34.16 -2.2 (-6.44%) Sell

Don't even consider investing in NKTR now, it is a risky investment

13 min read

NKTR significantly underperformed today. On a longer term basis, investors in NEKTAR THERAPEUTICS made -0.03% per day. Monday's performance of -6.44% was a significant underperformance compared to it's daily average.

[Themes containing NKTR]

NKTR showed a strong down trend over the last 3 months. During this period NKTR lost -39.74% and saw a maximum drawdown of -44.36%. There was a short signal during this period which returned +39.74%.


NKTR has been underperforming the SP500 index in recent time, after having outperformed till 8 Mar, 2018. Over the last 2 years 11 months and 10 days, NKTR outperformed the SP500 index on 52% days.

During the last three months NKTR delivered profits on 53% days. However, it still managed to end this period in a loss. It's best return during this period (of +8.73%) was on Monday, 12 Nov, 2018. While it's worst loss in the same period (of -17.22%) was on Monday, 22 Oct, 2018. There was initially a bullish trend during this period which started on 19 Sep, 2018 and went on till 25 Sep, 2018. The bullish trend returned +7.66% to investors. This was followed by a bearish trend that started on 18 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -30.32% of investor capital.

NKTR had 6 profitable and 6 loss making months over the last year. During the last year, NKTR underperformed SP500 index on monthly return basis. NKTR significantly outperformed SP500 index in Jan 2018, when it returned +45.03% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. NKTR had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

"If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring.

NKTR 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 NKTR's volatility from 28 Sep, 2018 to 22 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that NKTR has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in NKTR derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.

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

Based on your interest in NKTR you may find it interesting to know that NIHD and TPNL have both shown remarkable performance this year and deserve to be on every investors' watchlist.

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