eBay (EBAY) Offering Possible 6.84% Return Over the Next 8 Calendar Days

eBay's most recent trend suggests a bearish bias. One trading opportunity on eBay is a Bear Call Spread using a strike $51.00 short call and a strike $56.00 long call offers a potential 6.84% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $51.00 by expiration. The full premium credit of $0.32 would be kept by the premium seller. The risk of $4.68 would be incurred if the stock rose above the $56.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for eBay is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for eBay is bearish.

The RSI indicator is at 24.09 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for eBay

Forrester sees mobile e-commerce sales topping $100B this year, Re/code says
Mon, 12 May 2014 11:44:02 GMT

Apple tries to lift online sales by cutting refund times in half
Mon, 12 May 2014 11:40:37 GMT

EBAY implied volatility of 20 at lower end of index mean range
Mon, 12 May 2014 10:17:41 GMT

eBay: Cheap, But Legitimate Governance And Competition Concerns
Sun, 11 May 2014 15:14:38 GMT

This 1 Overlooked Business At Visa Has Huge Potential
Sun, 11 May 2014 14:02:24 GMT

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