At first glance, the strike selections for Yum China (YUMC) look terrible. And it’s all the more disappointing considering how poor YUMC stock has performed. Right off the bat, we know that the ticker has ignominiously earned an 88% Strong Sell rating from the Barchart Technical Opinion indicator. That stems from, at least in part, the ticker’s year-to-date loss of nearly 13%.
It doesn’t end there. On Tuesday, YUMC stock represented one of the 200 names listed in Barchart’s “1-Month Large Cap Percent Change Declines.” It got the title thanks to a 15% loss in the trailing 30 days. However, from a contrarian perspective, the crimson stains would initially seem to be a positive.
