TTWO has been one of the worst stocks to own in February over the past decade
After hitting a nearly two-year high start to 2024, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) could be due for a breather. While shares of the video game company boast a 46.3% year-over-year lead and are already up 3% year to date, they were last seen down 0.9% at $165.49 as seasonality trends threaten to take ahold.
According to data from Schaeffer's Senior Quantitative Analyst Rocky White, Take-Two Interactive Software is the worst 'leisure goods' stock on the S&P 500 (SPX) to own in February. The equity finished the month lower in seven of the past 10 years, averaging a loss of 5.27%. Based on its current perch, another move of this magnitude would put the shares back below $157, near its annual lows.
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),TTWO's 10-day put/call volume ratio of 1.42 registers in the 92nd annual percentile. So puts have not only outpaced calls absolute basis over the last two weeks, the elevated ration shows the rate of put buying relative to call buying has been accelerated.
It's also worth consider that Take-Two Interactive Software stock's Schaeffer's Volatility Scorecard (SVS) sits at 0 out of 100, which makes it the perfect premium-selling candidate.