Despite having a reputation as a historically weak period for stocks, September turned out to be a strong month for the market this year. October may bring its own challenges, as it is considered volatile by several news sources, including MarketWatch.
With this backdrop in mind, we’ve compiled a list of the worst stocks to own this coming month, and more Chipotle Mexican Grill Inc (NYSE:CMG) stands out among them. According to Schaeffer’s Senior Quantitative Analyst Rocky White, CMG ended October lower eight times in the past 10 years, averaging a loss of 4.8%.
Last seen today, CMG was down 0.4% at $57.56. The stock has been struggling to break out above the $58.50 region and is up 26% year-to-date.
Options traders are betting on high activity, and unwinding this confidence can present a headache. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CMG’s 10-day call/put volume ratio of 3.56 is in the high 94th percentile of its annual range.
2024-09-30 22:41:22