WORKDAY, INC. is a falling knife that can bleed you if you catch it on Friday. It delivered -1.59% to close at 162.03. On a day when the overall market breadth was 35%, it closed higher than 16% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.
WDAY showed a strong bullish trend over the last 3 months. During this period WDAY increased by +11.95% and saw a maximum drawdown of -17.35%. There were 2 long signals during this period that returned a cumulative of +8.82% to investors.
WDAY has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 12 Feb, 2016 to 6 Dec, 2018. Over the last 2 years 11 months and 10 days, WDAY outperformed the SP500 index on 54% days.
During the last three months WDAY was mostly profitable and delivered on average +0.24% per day. It's best return during this period (of +12.87%) was on Friday, 30 Nov, 2018. While it's worst loss in the same period (of -7.57%) was on Monday, 19 Nov, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 24 Sep, 2018 and went on till 28 Sep, 2018. This bullish trend returned +5.21% to investors.
The last 12 months saw WDAY's investors making profits in 6 months and incurring losses in 6 months. WDAY was less consistent in delivering monthly returs than SP500 index. WDAY significantly outperformed SP500 index in Aug 2018, when it returned +24.61% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. WDAY had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.
Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand
WDAY is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in WDAY's volatility from 1 Oct, 2018 to 20 Nov, 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 WDAY 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 WDAY derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.
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