As President-elect Donald Trump prepares for his inauguration, his administration is preparing to make major policy shifts. Among these moves is the selection of Robert Kennedy Jr. to lead the Department of Health and Human Services – a decision that is already putting pressure on… Vaccine stock. For cautious investors, this may be a signal to stay away Pfizer (NYSE: PFE)a stock with a history of poor performance in January.
According to data from Rocky White, senior quantitative analyst at Schiffer, the average January loss has been 4.6% over the past 10 years, and he has finished the month in the red eight of those times. In fact, the last time Pfizer stock rose for January was in 2018. A similar move from the stock’s current price of $26.39 would put it near the $25 level.
Shares are pulling back a bit today, though they are still well above their Nov. 15 low to $24.48 — their lowest level since January 2013. Shares are down 8.2% in 2024, though they are on track for a small gain in December. To seize gains. Four consecutive months of defeats.
If this historical trend continues again, it could force options traders to change their optimistic tune – a move that could impact PFE. This is according to Schaeffer Securities’ Open Interest Ratio (SOIR) of 0.55 which falls in the top percentile of yearly readings, indicating a propensity for calls among blue chip players in the short term.
Options appear to be an attractive route to take when weighing on Pfizer stock, according to a 20% Schaeffer’s Volatility Index (SVI) that ranks in the 11th percentile over the past 12 months. What’s more, security Schiffer Volatility Scorecard (SVS) It sits at a relatively low level of 30 out of 100, making it a prime sell candidate for these short-term bulls.
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