CFG has been one of the worst stocks to own in March over the past decade
Citizens Financial Group Inc (NYSE:CFG) is down 2% at $30.69 at last glance, and seasonality implies that these losses could only accelerate over the next 30 days.
This is per data from Schaeffer's Senior Quantitative Analyst Rocky White that shows Citizens Financial stock is one of the worst stocks on the S&P 500 (SPX) to own in March. In fact, CFG is the worst bank stock, beating out KeyCorp (KEY), Zion Bancorporation (ZION), and eight other sector peers that made the list.
According to White's data, the equity finished the month lower 78% of the time over the past 10 years, averaging a loss of 10.75%. Based on its current perch, another move of this magnitude would put the shares at $27.39, or its lowest level since early December.
This will come as good news for options traders that jumped on the bearish band wagon over the last 10 trading days. At the International Securities Exchange (ISE), Cboe Volatility Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Citizens Financial stock's 10-day put/call volume ratio of 17.88 registers in the 99th percentile of its annual range.
Those looking to jump on board can do so for a bargain. This is per CFG's Schaeffer's Volatility Index (SVI) of 33% that stands higher than just 12% of readings from the past 12 months, which implies options traders are pricing in lower-than-usual volatility expectations.
Since jumping to a nine-month high in mid-December, the equity pulled back on the charts, with a late-January rally losing steam just below the $34.40 mark. In the time since, its 30-day moving average has pressured the stock lower, while its 80-day trendline just stepped up as support. Fresh off its second consecutive monthly loss, CFG now sports hefty year-over-year and year-to-date deficits.