11.61 -0.12 (-1.02%) Sell

BBBY is a falling knife, continues to bleed every investor trying to catch it

13 min read

BED BATH & BEYOND INC ranked among the worst performers today. It returned -1.02% to close at 11.61. It's recent 5 day performance has been +1.38%, -6.24%, +0.16%, +0.41% and -1.45%.

[Themes containing BBBY]

BBBY showed a strong down trend over the last 3 months. During this period BBBY returned -37.45% and saw a maximum drawdown of -39.52%. There was a short signal during this period which returned +37.45%.


BBBY has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, BBBY underperformed the SP500 index on 54% days.

BBBY returned losses on 54% days in the last three months. During this time, it delivered on average -0.67% per day. It delivered it's worst daily return of -21.0%, during this period, on Thursday, 27 Sep, 2018. There was initially a bullish trend during this period which started on 18 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +3.05% to investors. This was followed by a bearish trend that started on 14 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -12.86% of investor capital.

On monthly basis, BBBY delivered losses in more months over the last year, than profits. BBBY delivered profits less regularly than SP500 index. BBBY was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -16.39% compared to -7.28% returned by SP500 index in Oct 2018. BBBY had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from Jul 2018 to Dec 2018) during which period it delivered -45.75%. It is interesting to note that both BBBY and SP500 index significantly outperform during months when quarterly/annual results are announced.

It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.
-- Robert Kiyosaki

BBBY is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in BBBY's volatility from 25 Sep, 2018 to 14 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BBBY has positive skewness in it's return distribution. This indicates that investors can expect BBBY to make attempts to recover from drawdowns quickly. Which makes BBBY a good candidate for momentum based trading on short-term bullish trends or counter-trends.

Investors trading in BBBY derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than BBBY. Therefore, SP500 must receive a lower allocation than BBBY in your portfolio. BBBY usually has shorter drawdown period than the SP500 index.

Based on your interest in BBBY you may find it interesting to know that TYHT has shown remarkable performance and deserves to be on every investors' watchlist.

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