September proved to be a robust month for the market this year, despite its typical perception as a weak season for stocks. However, October may present its own set of challenges, as it has been characterized as volatile by numerous news outlets, including MarketWatch.
In light of this scenario, we’ve put together a list of the least favorable stocks to hold in the coming month, with Chipotle Mexican Grill Inc (NYSE:CMG) prominently featured. As noted by Schaeffer’s Senior Quantitative Analyst, Rocky White, CMG has ended the month of October lower eight times in the last decade, with an average decline of 4.8%.
As of the latest update today, CMG was down 0.4% at $57.56. The stock has struggled to break above the $58.50 level, although it still maintains a 26% gain year-to-date.
Options traders appear to be betting on an upward movement, and a reversal of this optimism could pose challenges. 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 is within the elevated 94th percentile of its annual range, indicating a strong preference for calls recently.