eBay Inc. (EBAY)
I am looking at EBAY as a potential volatility play.
I shall use the JAN series of options, which trades for the last time 37 days hence, on Jan. 20.
Implied volatility stands at 29%, which stands in the 31st percentile of its annual range and the 36th percentile of its most recent move. The price used for analysis was $20.86.
Both the recent range percentile of volatility and the annual range percentile are lower than I like. I prefer that at least one of them be in the 50th percentile or higher.
I’m cutting the analysis short at this point.
Decision for My Account
For the reasons stated above, I am passing on an EBAY trade at this point.
Tim Bovee, Portland, Oregon, Dec. 14, 2016