EBAY
Daytrading Summary 04/06/20 - 4 Trades and +2.34%!Hi traders,
Let's do a daily recap!
In my ID trades, I risk 1% of the account per trade and go for 2% (2:1 RRR)
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Sometimes I adapt a little bit as you can see in the graphs.
I had 4 trades, 2 winners and 2 losers . If I were to point out the least interesting it would be the W short. I had literally zero emotions towards that trade. It was going to either drop dead and make some fast profit or fail, which it did. No problem, move on...
My "Italian marriage", however, was definitely EBAY. I was staring at the screen watching all the stocks (previously weaker) grow steadily, while EBAY was just stuck. In the end, however, I got paid a little extra for my troubles and ended Monday in solid green.
How was your Monday?
Please let me know if you'd enjoy this format from now on as well!
Good trades,
Tom from FINEIGHT
THE WEEK AHEAD: AAPL, EBAY, TSLA, X, AMD, FB EARNINGSEARNINGS:
Here are the stocks that announce earnings this week that are of most interest to me from a volatility contraction play standpoint:
AAPL (85/35), Tuesday, After Market Close.
EBAY (82/34), Tuesday, After Market Close.
AMD (56/59), Tuesday, After Market Close.
TSLA (80/75), Wednesday, After Market Close.
FB (54/33), Wednesday, After Market Close.
X (55/61), Thursday After Market Close.
Although TSLA has the greater than 70% rank/greater than 35% 30-day metrics I generally look for in these plays, its liquidity leaves something to be desired, although I'm naturally looking at after hours quotes here, and they're showing unattractively wide.
From a "bang for your buck standpoint" (credit received as a function of share price), the most attractive plays are in AMD and X with their respective February at-the-money short straddles paying 6.39 (12.7% of share price) and 1.25 (13.3%). Pictured here is a delta neutral AMD February 21st (26 day) 43/60 short strangle, paying 1.29 at the mid price with delta/theta metrics of -.21/6.69 and break evens wide of the expected move on both sides.
With AAPL and FB, I'm more likely to go out to March to collect a little more and have more room to be wrong, in spite of the fact that volatility contraction is likely to be more muted, with the AAPL March 20th 285/355 15 delta short strangle paying 6.75 and the FB 195/240 paying 4.64. EBAY doesn't appear to be paying more than 1.00 for a 16 delta, so I'm unlikely to partake unless volatility dramatically ramps up here in the next couple of days.
EXCHANGE-TRADED FUNDS (SCREENED FOR THOSE PAYING >10% IN CREDIT RELATIVE TO STOCK PRICE IN <180 DAYS UNTIL EXPIRY):
USO (54/35), March
FXI (53/24), June
XBI (50/30), June
XLE (32/19), July
EWW (31/18), June
SMH (28/24), May
XOP (25/32), March
GDXJ (23/29), May
GDX (20/26), May
EWZ (13/25), June
Here, the rank/30-day ideal is >50, >35%, with only the peskily small USO meeting those criteria. It's just one of those periods when single name premium selling is paying in shorter duration, but exchange-traded sector and broad market funds are not, at least in the 45 day wheel house. Consequently, it's a Hobson's choice of either (a) selling premium in single name; (b) selling sector/broad market, but of longer duration; or (c) hand-sitting. I'm kind of opting for a little of single name and a little of longer duration sector stuff just to keep the theta on and burning.
BROAD MARKET (SHOWING EXPIRY THAT PAYS >10% IN CREDIT RELATIVE TO STOCK PRICE):
EEM (34/19), September
QQQ (25/19), September
IWM (26/17), September
SPY (21/14), November
In spite of the little volatility pop we had last week, duration that pays remains duration that is hugely long ... .
VIX/VIX DERIVATIVES:
VIX finished the week at 14.56, with front month /VX futures contracts going for 16.05, 16.26, and 16.72 in February, March, and April respectively. If the volatility hangs in there through next week, I may consider adding a small number of units to my VXX short position. Naturally, the pop isn't massive, so I don't want to go all in as though "this is it," since there could be more volatility ahead. By the same token, there could be less, since market memory tends to be short.
EBAY, How do you like this?The price bounced from that Support/Resistance Zone several times.
Now it was stopped by zone after GAP.
Potential good Buy entry here.
Before to trade my ideas make your own analyze.
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Thanks for your support!
Ebay: Long term Buy Signal.Ebay is coming off a strong rebound last week on the 1D MA200. 1D is again gradually turning bullish (RSI = 50.474, ADX = 33.642, Highs/Lows = 0.3699, CCI = 102.4213) as it approaches the 1D MA50.
What is more interesting is that last time Ebay touched the 1D MA200 after a Golden Cross formation (took place last March) was in 2016/ 2017. The rebound was extended then to a new Higher High. Based on that we have turned bullish again on Ebay targeting 43.00.
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Shorting EBAY sharesOn the H4 chart of EBAY, it seems that that the instrument has comleted its local 1-5 Elliott cycle and ready for ABC zigzag correction. In addition, we can see the AO indicator divergence in the 5th wave which a soling indication of the trend end. Going short using levels that are marked on the chart. What do you think?
Short Setup on EBAY by ThinkingAntsOk4H CHART EXPLANATION:
If price breaks down the Support Zone of the range, it has potential to start a downside move towards the Support Zone at 31. A few days ago it started to show weakness on MACD, as we can observe the Bearish Divergence while the price tried to make higher highs.
Daily vision:
BUY! WEEKLY CHART - BULLISH INDICATORSeBay, the long forgotten company!
Weekly Chart looks good. Although it must break upward resistance around $35.50, it should run higher.
Currently, the stock is trading under the cloud. It does not worry us because indicators are turning up, BULLISH
Almost every indicator is turning BULLISH
MACD - Turning BULLISH
RSI - Turning BULLISH
STOCHASTIC - Turning BULLISH
ON BALANCE VOLUME - Turning Up, BULLISH
ACCUMULATION / DISTRIBUTION Should start moving up after this post!
Position: 30,000 SHARES
PRICE: $34.57 (We took the position on Thursday)