EBAY

Discussion in 'Trading' started by optionsplayer, Mar 26, 2003.

  1. short 5 started at 88,1 every 1/5 up...also bought 5 july 70 puts/sold may 80`s..we will see..good luck to all, no matter what your pos!
    C.
     
    #11     Mar 27, 2003
  2. ebay is a tough short because everyone knows its overvalued. too crowded of a short. shorting stocks on valuation alone isnt very wise.it will sell off someday but the timing is the tough part. ebay took out a lot of professional shorts in the internet boom.
     
    #12     Mar 27, 2003
  3. I shorted already at about $ 84. Ready to short more, but this will be a difficult short play, you need big balls and enough money to end it profitable.
    Maybe we will see a stock split, like in the old days, which is the nigthmare of unexperienced shorties.

    Good luck to all. :p
     
    #13     Mar 27, 2003
  4. I think that's the ticket... collar it. I do that a lot if I think it's warranted by downside target.

    Not in EBAY yet.... but watching for sadaam to eat a bullet first (and maybe they auction it off on their site). Then after earnings... maybe a blowoff and reversal for a short entry.
    :eek:

    Ice:cool:
     
    #14     Mar 27, 2003
  5. What about a pair trade?
     
    #15     Mar 27, 2003
  6. heilbronner,
    I have been a trader for about 2 1/2 years now going equally long and short but have never been short through a stock split...can you elaborate please. Thank you.
    C.
     
    #16     Mar 27, 2003
  7. gaj

    gaj

    india - if you short 100 shares , and it splits at 88 (2 for 1)...

    you're now short 200 shares at 44.
     
    #17     Mar 27, 2003
  8. To elaborate a little further, stocks that split (if they're strong) will tend to move back up quickly toward their pre split price, as more investors see the post split price as more of a bargain. See EXPE as a perfect example, which pre split had trouble getting above the 85 level, but after the split had no problem cracking 50 (i.e. 100 pre split). Also, when a split is announced, strong stocks tend to run up into the split. This can make it scarier for shorts. If in fact EBAY announced a split, I would find it much less attractive as a short because of this psychological phenomenon.
     
    #18     Mar 27, 2003
  9. You don' know, so I will tell you. Nothing happens. When the split is done you are short your inventory x split ratio.

    But every time a split is announced, people get nervous, they are short and are loosing money, some even don't know what happens with their short inventory, so they finally sell in panic. This used to be an old scheme during the hype to push stocks into the stratosphere for a limited time.

    Good night.
     
    #19     Mar 27, 2003
  10. thanks guys/gals...BTW, has anybody heard any hard facts about the supposed stock split for EBAY?
     
    #20     Mar 27, 2003