Are We Near a Market Correction?Five Stocks Showing Signs of Weakness After the October 10 Sell-OffAfter a volatile end to last week, many traders are wondering whether the market is setting up for a correction. Futures are trading higher today due to the holiday closure, but remember—green futures on a quiet day don’t always mean the worst is behind us.Friday’s trading session (October 10) was heavily impacted by renewed concerns over trade tensions after a tweet from former President Trump hinted at possible new tariffs on China. The reaction was immediate: stocks sold off sharply, volatility spiked, and even the crypto market felt the heat.Rather than trying to short the entire market, it can be smarter to identify which individual stocks look the weakest. If the selling pressure continues this week, these are often the first to drop again. Here are five that stand out.Understanding the BasicsBefore diving into the list, let’s decode some of the terms traders use to spot potential market weakness:1. Relative VolumeThis measures how much trading activity there was in the options market compared to the average of the past 90 days.A relative volume of 3.3 means option trading was 3.3 times higher than normal.High relative volume tells us that traders are paying attention—often because they expect a big move.2. Net DeltaNet delta in this context shows whether more traders were buying calls (bullish bets) or puts (bearish bets).A negative net delta means put options dominated, signaling bearish sentiment.The bigger the negative number, the stronger the bearish bias in options positioning.3. Implied Volatility (IV) and IV RankImplied volatility (IV) represents the market’s expectation for how much a stock will move in the future.IV Rank compares the current IV to its range over the past year.A high IV rank (above 80%) means traders are paying up for protection, often due to fear of bigger price swings.Rising IV during a sell-off is another warning sign of stress.5 Stocks That Could See More DownsideThese names showed unusually heavy bearish activity on October 10. If the market continues to weaken this week, they may be among those leading the next leg lower. Traders should use this list as research and decision support—not direct trading signals. Always do your own chart analysis and wait for clear entry setups, possibly after a retracement upward.1. PayPal Holdings (PYPL)Relative Volume: 3.3Net Delta: -1.0 million (bearish)IV Rank: 98%Price Change (Oct 10): -7.8%PayPal saw more than triple its usual option activity, with most of that flow being put buying, not call buying. That means traders were positioning for more downside or protecting against it. With an IV rank near 100%, the options market is clearly pricing in turbulence.Even though the company doesn’t report earnings until January, the sharp drop suggests investors are losing confidence in near-term growth prospects. If overall market sentiment worsens, PayPal could remain under pressure.2. Advanced Micro Devices (AMD)Relative Volume: 2.6Net Delta: -190,000 (bearish)IV Rank: 98%Price Change: -7.7%AMD had one of the steepest declines among large-cap tech names on Friday. Traders aggressively bought puts, sending implied volatility to near the top of its yearly range. When both price and volatility rise in opposite directions (price down, volatility up), it’s often a sign of panic hedging—suggesting traders expect more downside.The key thing for traders to remember: stocks like AMD often bounce briefly after such sharp sell-offs. If you’re considering a short, waiting for a retracement toward resistance can improve your entry.3. Qualcomm (QCOM)Relative Volume: 2.6Net Delta: -201,000 (bearish)IV Rank: 89%Price Change: -7.3%Qualcomm’s options activity also spiked, and volatility jumped more than 16% in a single day. This points to renewed fear in the semiconductor space.It’s worth noting that Qualcomm tends to track broader chip sentiment, which has been shaky since the tariff headlines. If markets resume selling, QCOM could retest or even break last week’s lows.4. Corning (GLW)Relative Volume: 7.4 (highest in list)Net Delta: -112,000 (bearish)IV Rank: 98%Price Change: -4.8%Corning showed the largest spike in relative option volume of any name on the list—over seven times its average. This kind of surge often happens when institutions rush to hedge their exposure ahead of potential bad news.While the stock’s decline wasn’t as sharp as AMD or PayPal, the combination of extreme option volume and elevated volatility suggests traders are preparing for more weakness ahead of earnings later this month.5. Broadcom (AVGO)Relative Volume: 2.0Net Delta: -623,000 (bearish)IV Rank: 75%Price Change: -5.9%Broadcom’s options were heavily skewed toward bearish positions, with traders paying up for protection. The company has an event scheduled for October 14, and it’s common for volatility to rise ahead of such dates.Given the large price drop and continued caution in semiconductor stocks, AVGO could struggle to recover quickly. However, traders should wait for Tuesday’s session to confirm whether sellers remain in control.What Traders Should Do NextThese five stocks aren’t guaranteed shorts right now—but they are the ones to watch closely if the market resumes its decline.Futures are pointing higher today, which could trigger some early-week buying. Patience is key: if the broader indices start showing weakness again, the five names above could offer high-probability setups for traders who favor short-side opportunities.For now, this is research and education, not financial advice. You should always verify with your own chart analysis, confirm key resistance levels, and decide on your entry and stop-loss according to your own trading plan.So, if you are looking to short... (at your own risk only)... then...Friday’s action showed us which stocks investors were most eager to hedge or bet against. PayPal, AMD, Qualcomm, Corning, and Broadcom all displayed a clear pattern of heavy option volume, negative sentiment, and elevated volatility—a combination that often signals ongoing weakness if the market turns lower again.Keep an eye on these names this week, or put them on your analysis radar and have a go. Whether you’re looking for short opportunities or simply learning how to interpret market sentiment, understanding option flow and volatility can be one of the most powerful tools in your trading journey. You must do your own research, we never give investment and trading advice. Visit investingLive.com, formerly ForexLive.com, for additional opinions. This article was written by Itai Levitan at investinglive.com.