eBay Inc. (EBAY) is a global technology company that has created an open source platform that provides software developers and merchants access to its applications programming interfaces to develop software and solutions for commerce. The stock is currently trading around $63.68 at the upper end of its 52 week range of $46.34-$64.29. The stock has been outperforming the market this year rallying 13.83% year to date. EBAY is scheduled to report earnings before the opening bell tomorrow, and the stock is bullish today rising by $0.14 or 0.22% on the session ahead of the close.

Over the past 12 quarters EBAY has rallied on earnings day 7 times with an average move of 5.03%. The stock appears bearish on a chart going into the release having traded above or in the Ichimoku Cloud for the past few months since early April on the daily bars. Over the past 12 quarters EBAY has rallied from earnings to the nearest options expiration 7 times with an average move of 5.03%. The stock looks as if it could continue today’s trend and rip to the upside in today’s session. Investors saw last quarter the company was not influenced by strong currency headwinds and hope to see the continued trend. eBay is splitting its Marketplace and PayPal businesses so investors will receive one share of Paypal for every share of eBay they own to carry out the day after earnings release.

The options market is currently implying a move of around $2.39 or 3.8% in EBAY by this Friday’s close giving us targets of $61.29 and $66.07.

Andrew Keene

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