7.86 -0.31 (-3.91%) Sell

Don't invest in FLEX now, it is an investor's nightmare

13 min read

FLEX LTD. was among the worst performers on Thursday. It lost -3.91% to close at 7.86. It is currently trading -59% below it's 52 week high of 19.61.

[Themes containing FLEX]

FLEX showed a strong down trend over the last 3 months. During this period FLEX lost -39.07% and saw a maximum drawdown of -48.13%. There was a short signal during this period which returned +39.07%.


FLEX has been underperforming the SP500 index in recent time, after having outperformed till 24 Nov, 2017. Over the last 2 years 11 months and 9 days, FLEX underperformed the SP500 index on 51% days.

During the last three months FLEX was mostly loss making and delivered on average -0.62% per day. It's best return during this period (of +10.95%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -35.01%) was on Friday, 26 Oct, 2018. There was initially a bullish trend during this period which started on 14 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +3.69% to investors. This was followed by a bearish trend that started on 3 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -8.99% of investor capital.

FLEX had 5 profitable and 7 loss making months over the last year. During the last year, FLEX underperformed SP500 index on monthly return basis. FLEX was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -39.12% compared to -7.28% returned by SP500 index in Oct 2018. FLEX had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do.
-- Mark Twain

FLEX 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 FLEX's volatility from 14 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that FLEX has significant positive skewness in it's return distribution. This indicates that investors can expect FLEX to recover from drawdowns quickly. Which makes FLEX a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in FLEX 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 FLEX. Therefore, SP500 must receive a lower allocation than FLEX in your portfolio. FLEX usually has shorter drawdown period than the SP500 index.

Based on your interest in FLEX you may find it interesting to know that OPNT and IX are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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