History Suggests This Apple Supplier Could Keep Dropping

QRVO has been in a channel of lower lows since August

Managing Editor
Nov 27, 2018 at 3:16 PM
facebook twitter linkedin

Apple (AAPL) is in the news today, after President Donald Trump threatened a 10% tariff on iPhones and laptops imported from China.  As a result, Apple suppliers such as Qorvo Inc (NASDAQ:QRVO) are lower today, down 0.5% to trade at $65.34, at last check. What's more, the worst could be yet to come for QRVO heading into December. 

According to Schaeffer's Senior Quantitative Analyst Rocky White, Qorvo is one of 25 S&P 500 Index (SPX) stocks with the worst December returns, looking back 10 years. QRVO has racked up the steepest average loss of 5.11%, and has ended the month higher less than half the time.

Daily Stock Chart QRVO

On the charts, Qorvo stock has carved out a channel of lower lows since early August, culminating in an annual low of $61 on Nov. 13. Plus, recent rally attempts have ran out of steam near $66 -- home to the stock's mid-November pre-bear gap lows and its year-to-date breakeven point. 

Should QRVO's struggles continue, there is ample room aboard the bearish bandwagon. While short interest increased by 10% in the most recent reporting period, the 6.78 million shares sold short is roughly half off its 2017 peak and represents a meager 5.4% of the security's total available float.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners