In theory, Barchart’s Three Day Losers screener represents an excellent place to springboard research into potentially discounted securities. Of course, the main barrier is the lack of probabilistic confidence in determining which outcome will materialize. Typically, securities tend to fall faster and harder than they rise; thus, demand for protective puts is usually greater than interest in speculative calls.
For PM stock, the concern for volatility protection is understandable. In the past three days, PM stock declined nearly 2%. In the past five sessions, it’s dipped just over 5%. Last month, the tobacco giant posted adjusted earnings of $1.91 per share for the second quarter, beating Wall Street analysts’ consensus target of $1.85. However, revenue of $10.14 billion missed the consensus view of $10.32 billion.
