The shares of Verizon Communications (VZ) are down 25.2% so far in 2022, after hitting an Oct. 21, roughly 11-year low of $34.55. The equity's latest rally is also falling short of the $40 region, which has been an area of resistance on the charts since September.
Investors should not expect much out of the equity in the coming weeks, either, now that VZ has neared a bearish trendline that has historically pressured the stock lower. The trendline in question is VZ's 100-day moving average. According to a study from Schaeffer's Senior Quantitative Analyst Rocky White, there have been five similar signals over the last three years.
One month later, Verizon Communications stock was lower 80% of the time, averaging a nearly 1% dip. Refinitiv Eikon The options pits already lean bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day put/call volume ratio ranks higher than 82% of readings from the past year.
This indicates puts have been getting picked up at a much quicker-than-usual clip lately. Plus, Verizon Communications stock's Schaeffer's Volatility Index (SVI) of 21% sits higher than just 23% of readings from the last 12 months, suggesting options traders are pricing in relatively low volatility expectations right now.