Ebay Stock Flat Ahead Of Q3 Earnings Report

The shares of eBay Inc (Nasdaq: EBAY) are up 0.04% at $53.36 this afternoon, just a day before the company's third-quarter report, due out after the close on Wednesday, Oct. 28. Below, we will look at the e-tail name's performance on the charts of late, and explore some of the options activity surrounding the stock ahead of the event.  

Digging deeper, the equity has pulled back from its July 13 all-time high of $61.03 and traded as low as $47.44 in mid-September -- its lowest level since June. Though the security is once again trading above its 40-day moving average, the 10-day moving average is still keeping a tight lid on the shares. Longer-term, EBAY is up 47.7% in 2020.

EBAY chart Oct 27

Meanwhile, the options pits are flashing much more bearish activity than is typically seen. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), EBAY sports a 10-day put/call volume ratio of 0.93, which sits in the 83rd percentile of its annual range. This suggests a healthier-than-usual appetite for bearish 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, though last time the company reported earnings, in July, the equity saw a next-day drop of 3.2%. The security averaged a post-earnings swing of 4.1% during these last eight reports, regardless of direction. This time around, the options market is pricing in a much larger move of 8.9%. 

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