AGN investors take a massive hit

ALLERGAN PLC was among the worst performers on Tuesday. It lost -1.77% to close at 149.69. On a day when the overall market breadth was 35%, it closed higher than 11% of the market. In comparison, the benchmark SP500 index closed today at -0.0004%.

[Themes containing AGN]

Buy-and-Hold investors in AGN experienced a maximum drawdown of -22.62% over the last three months. It lost -21.25% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +13.24%.

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AGN has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, AGN underperformed the SP500 index on 54% days.

AGN returned losses on 60% days in the last three months. During this time, it delivered on average -0.37% per day. It delivered it's worst daily return of -7.55%, during this period, on Tuesday, 30 Oct, 2018. There was initially a bearish trend during this period which started on 8 Nov, 2018 and went on till 14 Nov, 2018. The trend delivered -7.19% losses to investors. This was followed by a bullish trend that started on 28 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +3.94% to investors.

AGN had 5 profitable and 7 loss making months over the last year. During the last year, AGN underperformed SP500 index on monthly return basis. AGN was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -17.84% compared to -7.28% returned by SP500 index in Oct 2018. AGN had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -23.78%. It is interesting to note that both AGN and SP500 index significantly outperform during months when quarterly/annual results are announced.

Many folks think they aren't good at earning money, when what they don't know is how to use it.
-- Frank A. Clark

AGN is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in AGN's volatility from 13 Sep, 2018 to 1 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Investors trading in AGN derivatives at this moment can consider 'Bull Call Spread' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than AGN. Therefore, SP500 must receive a lower allocation than AGN in your portfolio.

Based on your interest in AGN you may find it interesting to know that RDN and WP have both performed similar to AGN and can be considered by investors as alternative investment options.