eBay (EBAY) Offering Possible 9.89% 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 $57.50 short call and a strike $62.50 long call offers a potential 9.89% 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 $57.50 by expiration. The full premium credit of $0.45 would be kept by the premium seller. The risk of $4.55 would be incurred if the stock rose above the $62.50 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 52.72 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

Chinese e-commerce giant Alibaba sets U.S. IPO
Sun, 16 Mar 2014 17:40:28 GMT

Alibaba picks US for IPO; in talks with six banks for lead roles
Sun, 16 Mar 2014 12:25:38 GMT

Alibaba picks U.S. for IPO; in talks with six banks for lead roles
Sun, 16 Mar 2014 10:44:02 GMT
Reuters – Alibaba Group Holding Ltd said on Sunday it has decided to begin the process for an initial public offering (IPO) in the United States, ending months of speculation about where the Chinese e-commerce giant would go public. Alibaba's planned U.S. listing is the most anticipated IPO since Facebook Inc raised $16 billion in 2012. Alibaba's decision to go to the United States is a blow to the Hong Kong stock exchange, which was initially the company's preferred venue for the IPO.

Alibaba to Start Process of Filing for U.S. Initial Offering
Sun, 16 Mar 2014 09:37:18 GMT

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MarketWatch – Ever had someone posing as the police say they have a warrant for your arrest unless you pay a fine? It's one of the top five scams of 2013 listed by The Council of Better Business Bureaus. MarketWatch's …

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