eBay Inc (EBAY) is a tech company that provides services and tools for individuals, small businesses, and merchants engage in commerce online. The company’s stock is currently trading around $53.70 in a 52 week range of $45.66-$58.04. The stock has underperformed the broader market this year, rallying only 5.9% year to date. EBAY is set to report their most recent quarterly earnings today after the market close. EBAY has performed relatively well on earnings day over the past 8 quarters. The stock has rallied 5 times on the release of the last 8 earnings reports with an average move of 6.2%. The options market is currently implying a move of around 5% by this Friday’s expiration. EBAY is currently trading above the Ichimoku Cloud meaning it is in bullish territory technically. With the strong historical earnings performance in EBAY and the relatively bullish chart we believe that EBAY sets up well for a long into earnings.
Trade: Buying the EBAY Oct 56-57 Call Spread for $0.25
Risk: $25 per 1 lot
Reward: $75 per 1 lot
Breakeven: $56.25
