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.
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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.
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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).