Hasbro stock has tended to underperform during the month of December
As the year comes to an end, traders will be once again looking to adjust their investment portfolios and protect themselves against risk. To aid in that process, we have compiled a list of the worst-performing stocks that investors should avoid during the month December. Specifically, toy concern Hasbro, Inc. (NASDAQ:HAS) stands out as one of the worst stocks to own during this time of the year. Below is a closer look at how HAS has performed recently, and why now could be a good time to purchase options.
According to Schaeffer's Senior Quantitative Analyst Rocky White, HAS has averaged a December loss of 4.9% over the past 10 years, and has finished the month positive only twice. That makes it the third worst stock on the list, behind only Hanesbrands (HBI) and Best Buy (BBY).
From its current perch of $90.24, a move lower of similar magnitude would put HAS at the $85 mark, which coincides with the site of the security's early October bear gap. And although shares are getting support from the 40-day moving average, the stock remains down 14.5% year-to-date.
Options traders have been betting on a move lower, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Hasbro stock's 10-day put/call volume ratio of 2.96 ranks in the elevated 95th annual percentile. In other words, puts have been bought to open over calls at a faster-than-usual clip.
Digging deeper, shorts are shedding their positions. Short interest fell 11.5% in the most recent reporting period, and the 4.48 million shares sold short make up a significant 3.6% of the stock's available float, or nearly a week's worth of pent-up buying power.
Now seems to be a prime time to weigh in on Hasbro stock. That's because security's Schaeffer's Volatility Index (SVI) of 35% sits in the 15th percentile of its annual range. This means option traders are pricing in relatively low volatility expectations at the moment.