Ebay Stock Gears Up For Q2 Earnings Report

The equity is up over 50% this year

Digital Content Manager
Jul 24, 2020 at 2:47 PM
facebook twitter linkedin

The shares of eBay Inc (NASDAQ: EBAY) are up 0.2% at $55.24 this afternoon, just a few days ahead of the company's second-quarter report, due after the close on Tuesday, July 28. Below, we will look at how the stock has performed on the charts of late, and explore some of the options activity surrounding EBAY ahead of the event.  

Digging deeper, the equity has completely recovered from its mid-March lows near the $26 level. Shares have been on a steady climb since April, breaking record highs on a monthly basis, with the equity's latest all-time-high coming in at $61.06 on July 13. And while the stock has cooled off from that peak, its 30-day moving average has contained its latest pullback. Longer term, EBAY is performing particularly well, and sports a 51.9% lead year-to-date.


Analysts are split on the equity. Of the 23 in coverage, 13 carry a tepid "hold" rating, while the remaining 10 sport a "strong buy". Meanwhile, the stock's 12-month consensus target price of $55.62 is right in line with current levels.

The options pits, however, show calls are more popular. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), EBAY sports a 10-day call/put volume ratio of 4.11 which sits in the 90th percentile of its annual range. This suggests a healthier-than-usual appetite for bullish bets over the past two weeks.

Lastly, a look at the equity's history of post-earnings reactions during the past two years shows a generally positive response. During its last eight reports, more than half of these next-day sessions were higher, including a 5.9% jump in October 2018. The security averaged a post-earnings swing of 5% the last eight quarters, regardless of direction. This time around, the options market is pricing in a much bigger move of 8.2%. 


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report


Special Offers from Schaeffer's Trading Partners