Schaeffer's Top Stock Picks for '25

Lyft Stock Rallies Right Into 'Sell' Signal

The stock could fall back toward $11

Deputy Editor
Sep 4, 2024 at 12:58 PM
facebook X logo linkedin


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.

LYFT Chart September 42024

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.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));