Get started

EBAY

THE WEEK OF 10/16: WHAT I'M LOOKING ATWhile I grind away on various covered call positions (I only have one covered call with an October short call on; the rest are in November or December), I'm looking ahead to some decent earnings for premium selling. Generally, I'm looking for underlyings whose implied volatility is above the 70th percentile for the past 52 weeks and that have background implied volatility of greater than 50% to play for a contraction in volatility immediately following the earnings announcement, with the go-to strategies being short strangles or iron condors. Currently, there are four underlyings with good liquidity options that announce earnings next week and whose volatility is above the 60th percentile for the preceding 52 weeks: IBM, NFLX, UA, and EBAY. I'm screening for >60 implied volatility rank at this point, since volatility in these could still ramp up to my >70%, meaning that they might be worth keeping an eye on. IBM -- Announces 10/17 after market close. The implied volatility rank is now in the 85th percentile. Unfortunately, the background implied volatility is far from being up to snuff at this point for me (28.3%). NFLX -- Announces 10/17 after market close. Implied vol rank: 64th percentile; implied volatility 56.6%. It's very nearly "there". Hopefully implied volatility pops a little more right before earnings. UA -- Announces 10/17 after market close. Rank: 62; implied vol 41.7%. Needs more. EBAY -- Announces 10/19 after market close. Rank: 93; implied vol 41.6%. Needs more. After I look at implied volatility percentile and the background implied volatility, I look at what I can get out of a setup. Generally, I'm shooting for a 1.00 credit for either a short strangle or iron condor, since I look to take these off at 50% max profit (i.e., a .50 ($50)/contract profit). Alternatively, I look at whether a short straddle or iron fly would make sense if the underlying is just too cheap to yield a decent enough credit. With short straddles/iron flies, I generally look to get 2.00 in credit at the outset, since I tend to manage those at 25% max.
NYSE:IBM
by NaughtyPines
Is Alibaba Going To Run Wild On $EBAY & $AMZN?Last week, Chinese internet giant Alibaba Group Holding Ltd filed papers to be a public traded company. The IPO is expected to be the largest deal in history. The company is expected to fetch over $20 billion from investors. Alibaba is expected to go public sometime this month. U.S. consumers are now going to be much more familiar with the Alibaba brand once this IPO is finalized. At this time, the U.S. consumer has been shopping on Amazon.com (NASDAQ:AMZN). Amazon.com stock topped out in January 2014, at $408.06 a share. Since that time, the stock has plunged to a low of $284.38, before rebounding to its current price of $343.94 a share. Either way, the Alibaba IPO is going to be a negative for Amazon.com and other major online retailers. Short term traders should note that the Amazon.com stock will have major chart resistance around the $360.00 level. That resistance level represents an area where the stock is expected to move lower, or encounter an area of resistance from moving higher. eBay Inc (NASDAQ:EBAY) is another major online company that could be adversely affected by the Alibaba IPO. After all, the name Ali Baba comes from the fable Ali Baba and the Forty Thieves. You can be sure, Alibaba will certainly steal some online business after this IPO is released. Nick Santiago Chief Market Strategist www.InTheMoneyStocks.com
NASDAQ:AMZNShort
by InTheMoney_Stocks
EBAY broke down of major supporteBay broke down major support at $50 and closed on dead lows at $49.60 on Friday showing relative weakness as markets trading on highs. Today, it opened with gap and caught some early follow through. Gap open could be new point of reference at $49.30, then we have $49.50 previous low of the day and then $50 psychological level which should act like resistance if sellers want to keep control on price. I want to see few days of consolidation below, so then we can expect continuation move lower. ---------------------------------------------------------------------------------------------------------------------------------------------------------- Read my earlier thoughts on EBAY in the link below ----------------------------------------------------------------------------------------------------------------------------------------------------------
NASDAQ:EBAYShort
by andrew.berg
EBAY BULLISH RANGE MOVE notice that we are NOT using candlesticks, but rather Heiken Ashi. Heiken Ashi is very similar to the regular japanese candlesticks, but it fills in the gabs that are missing with the movement. ie if it was a bearish gap, there will be a bearish candlestick. This makes it MUCH easier to visually look at charts, as well as predict reversal candlestick patterns (engulfing, piercing, hammer, ect.). Remember that on top of everything i write after this sentence, you should wait for some sort of conformation such as a candlestick pattern on H1, H4, or D1 to enter this trade. EBAY has been ranging for quite some time now and it's at the bouncing point again (or at least close to it). I predict that the best entry would be the 50-52 area, as they are pretty good psychological & supply zone area. You'll also notice that if we do the fibonacci, it shows that the price just passed the 61.8% area, but now past the .764 area. So that that's another possible indication of a good buy. You will also notice that on the beginning of march, the price BROKE OUT of the range, but shot back down again later, which i DO find quite odd. Only thing i can get from that right now is that it's doing a retrace, although i wouldn't have wanted that retrace to be back inside the range.
NASDAQ:EBAYLong
by masud786