eBay Offering Possible 16.28% Return Over the Next 10 Calendar Days

eBay's most recent trend suggests a bearish bias. One trading opportunity on eBay is a Bear Call Spread using a strike $52.50 short call and a strike $57.50 long call offers a potential 16.28% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $52.50 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $4.30 would be incurred if the stock rose above the $57.50 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 below 20 which suggests that the stock is in oversold territory.

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

Huffington Post to launch global digital publication
Thu, 09 Jan 2014 00:31:13 GMT
Financial Times – The Huffington Post is launching a new global digital media publication that aims to “connect the world and connect the dots” through publishing a mix of first-person contributions from world …

Blur Group reports surge in ‘s-commerce'
Wed, 08 Jan 2014 14:57:31 GMT
Financial Times – Blur Group reported a 14-fold increase in the total value of projects submitted to its platform in the fourth quarter, as the online marketplace for business services attracted larger customers including …

Pre-Market: Ford CEO Ends Rumors He Will Take Over at Microsoft; Private-Sector Job Growth Improves
Wed, 08 Jan 2014 14:01:00 GMT
Minyanville – Shares of Micron Technology jumped 9.9% in the pre-market after the company reported better-than-expected earnings yesterday.

As It Expands, Amazon Sticks to Painstaking ‘Bar-Raiser' Hiring Program
Tue, 07 Jan 2014 21:36:54 GMT
The Wall Street Journal – Despite more than tripling its workforce in the past three years, Amazon has maintained a deliberate and time-consuming hiring process centered around well-trained evaluators known as “bar raisers.” …

Winter Chill Cools Spending As Consumers Hibernate
Tue, 07 Jan 2014 18:47:00 GMT
Investor's Business Daily – Winter Chill Cools Spending As Consumers Hibernate

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