LYFT is running into a historically bearish trendline
Shares of ride-hailing platform Lyft Inc (NASDAQ:LYFT) are 1% higher at $11.47 at last glance, as they look to log their third win in four sessions. LYFT has struggled this year, though, logging five-straight monthly losses and gaining in just five of the last 20 weeks. The security carries a 23.5% year-to-date deficit, and a bear signal currently flashing on the charts suggests there's more trouble ahead.
According to a study from Schaeffer’s Senior Quantitative Analyst Rocky White, LYFT just ran into the historically bearish 50-day moving average for the eighth time in the last three years. After the last seven signals, the stock was lower one month later 57% of the time, averaging a 3.1% loss for that period. A move of similar magnitude would put the shares closer to $11.
An unwinding of optimism in the options could also have bearish implications. This is per Lyft stock's 50-day call/put volume ratio of 4.09 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 88% of annual readings, indicating long calls are more popular than usual.
The security boasts relatively cheap options too. This is per LYFT's Schaeffer’s Volatility Index (SVI) of 51%, which ranks in the low 7th percentile of readings from the past year.