HPE is on Schaeffer's list of the worst S&P 500 (SPX) stocks to own in April
Computer hardware stock Hewlett Packard Enterprise Co (NYSE:HPE) has had an extremely choppy past month on the charts, during which it hit a March 6 record high of $20.07 before swiftly turning lower. And though the shares are now on track for their sixth daily gain in the last seven, with recent support from the 20-day moving average, they're also coming up on a rough seasonality period.
Per data from Schaeffer's Senior Quantitative Analyst Rocky White, HPE is one of the worst S&P 500 Index (SPX) stocks to own in April. The finished the month lower 62% of the time over the past 10 years, with a median loss of 4.4%. Based on its current perch at $17.80, another move of this magnitude would put the shares at $17.01.
An unwinding of optimism amongst options traders could help push the shares lower. At the International Securities Exchange (ISE), Cboe Volatility Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), HPE's 50-day call/put volume ratio of 12.95 ranks higher than all other readings from the past year, showing calls being picked up at a much faster-than-usual rate.
There is also minimal short covering potential, too. Short interest is down 27.5% over the last two weeks, and now represents a small portion of the stock's available float.
When weighing in on HPE's next move, options look like a good way to go. The stock's Schaeffer's Volatility Index (SVI) of 27% ranks in the low 17th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment.