September turned out to be a strong month for the market this year, despite its reputation as a historically weak period for stocks. October could bring its own challenges, however, as it’s been deemed volatile by several news sources, including MarketWatch.
With this backdrop in mind, we compiled a list of the worst stocks to own during this upcoming month, and Chipotle Mexican Grill Inc (NYSE:CMG) stands out amongst them. According to Schaeffer’s Senior Quantitative Analyst Rocky White, CMG finished the month of October lower eight times over the past 10 years, averaging a loss of 4.8%.
At last look today, CMG was down 0.4% at $57.56. The stock has been struggling to break out above the $58.50 region, and holds on to a 26% year-to-date lead.
Options traders have been betting on a move higher, and an unwinding of this optimism could provide headwinds. At 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 ranks in the elevated 94th percentile of its annual range, showing a heavy penchant for calls lately.
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