Ebay Bearish Trade due to normal pullbacks
Updated
It is normal for the market to make corrections when things get to high up and for people to start profit taking once earnings are announced. I know ebay as a stock that is volatile when it comes to earnings. So due to the big upswing this has been in it is natural to expect a downward swing to come bring others to reality. It can always go against me, that I do know. But I believe the chances of me winning out weight the chances of me losing on this trade which is a bearish credit spread with a credit taken in of $105.01 after commissions with this particular trade I went ahead and loaded up twice on the same trade so I took in around $209. With a risk of around $188, and max return of $209. Wish me luck. This strategy will set the precedent for the Macy's trade I have outlined in my "ideas" section on tradingview. I told my significant other that I am a bit afraid of this trade going against me because it is ecommerce, and I believe so much in ecommerce that I find this risky to bet against. BUT in the short term (which is what i'm doing) I would believe this can go down on earnings.
Note
Wooop woop ! called it. I closed out the short legs because I expect it to keep going up. Made some good $ out of this. I left the long legs open to catch some more gains.Note
Closed this whole trade out for a $170.86 gain which is great considering the only risk was $188. I was also in on a Iron Condor that I accidentally got into (didn't see what I was doing) that also turned out profitable ($33.53).
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