NEW YORK (Reuters) - Options Traders appeared to take a bearish stance on eBay Inc (EBAY.)(O) in advance of its report of earnings after the Bell on Wednesday.
Wall Street analysts expect web trading company to report earnings for the fourth quarter of 47 cents per share, compared to 44 cents a year earlier and 2.49 billion in revenues of $ 2.37 billion, according to Thomson Reuters StarMine.
Investment Research of Schaeffer, the ratio of interest open put-to-call on the stock was 1.10, met with surpassing calls between options would expire within three months. A put option gives the right to sell the shares at a fixed price that an option gives right to purchase.
The report "suggests option players are aligned bearishly enter gains," said Ryan Detrick, senior technical strategist to of Schaeffer, a research firm based in Cincinnati, Ohio options. "This indicates expectations are lowered for the event, which leaves the possibility for a head surprise on good news."
Shares of eBay fell 1 percent to $29.16 in afternoon trading. The stock was approximately 25% a year and up to 1.6% this month, but he has struggled to stay above the $30 level.
"The stock has not exchanged securely above this level since early 2008, it is therefore possible that bearish investors out there depend on this strength to continue," said Steve Claussen, investment Chief Strategist at brokerage online OptionHouse.com in Chicago, on the Web site.
Reflecting the bearish sentiment, a remarkable trade was made on Tuesday when a player of options picked up 15 000 updates strike $26 July for a premium of $1.32 each, according to Caitlin Duffy, strategist options to the interactive brokers group in Connecticut. The move is betting on the stock to fall by more than 18% profitability of $24.68 before end of July.
(Additional reporting by Doris Frankel in Chicago, mounting by Leslie Adler)
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