Why does ebay use stock options

When the feature is enabled, it is automatically applied to all the user's existing listings and to any new listings they create. When the quantity of an item goes to zero in a listing using this feature, the item remains 'alive'. When the item is in the out-of-stock state quantity equals zero , the item will not be shown in the search results until it is back in stock quantity greater than zero. When a listing using the Out-of-Stock feature has zero quantity, the listing fees are refunded if the listing is out of stock for the entire billing month.

If the listing is out of stock for 3 consecutive billing months, it is ended as shown in the table below. The following describes the behavior of listings that existed before this change; those using and not using the deprecated Out-of-Stock feature.

This change will not affect the use of the Out-of-Stock feature of existing listings. However in order for new listings to take advantage of this feature, the seller will need to enable the OutOfStockControlPreference. The following table shows what happens to items using the deprecated Item. OutOfStockControl setting. Benefits of This Feature The following are the benefits of using this feature. Saves time because the seller does not have to end and recreate the listing when waiting for additional inventory Improves inventory management Due to the SKU and ItemID mapping, the seller doesn't have to refer to multiple ItemIDs to get a count of how much they have in stock, what was sold, etc.

Since the listing stays alive, the sales history is retained Increases SEO search engine optimization because the item is long running, which increases the chances that it will be indexed by popular search engines.

Variations management becomes easier because Variations with zero quantity, which do not have sales, are kept alive All the variations can have a zero quantity What Happens When This Feature is Enabled The following describes how single SKU and multi-SKU items work when a seller enables this feature. Over the past month, the trend for EBAY stock has the share price reaching its all-time high at the top of the volatility range in late July, before falling well below its day moving average to the bottom third of the volatility range mere days later.

The price closed in the lower region depicted by the technical studies on this chart. The studies are formed by day Keltner Channel indicators. This array helps to highlight the way the price has fallen below the day moving average in the week before earnings. This price move from EBAY shares implies that investors' confidence is waning as the earnings report approaches. The typical average length of time used in its calculation is 10 to 20 time periods, which includes two to four weeks of trading on a daily chart.

In this context where the price trend for EBAY has recently fallen below its day moving average, chart watchers can recognize that traders and investors are expressing growing concern going into earnings.

It's notable that, in the week before earnings, EBAY's share price fell from its all-time high, closing well below the day moving average. That makes it important for chart watchers to determine whether the move is reflecting investors' expectations for unfavorable earnings or not. Option trading details can provide chart watchers with additional context to assist them in forming an opinion about investor expectations.

Recently, option traders are favoring puts over calls by a slim margin. On Monday, there were over 31, puts traded opposed to over 15, calls.

Normally, this volume indicates that traders are feeling bearish toward the earnings report. The Keltner Channel indicator displays a set of semi-parallel lines based on a day simple moving average and an upper and lower line. Because the upper lines are drawn by adding a multiple of ATR to the average and the lower lines are drawn by subtracting a multiple of ATR from the average price, then this channel indicator makes for an excellent visualization tool when charting historical volatility.

Option traders recognize that EBAY shares are below average and have priced their options as a bet that the stock will close within one of the two boxes depicted in the chart between today and Aug. The green-framed box represents the pricing that call option sellers are offering. It's necessary to note that the open interest featured over , calls compared to nearly , puts, demonstrating the bias that option buyers had, as traders favored puts over calls.

It is notable that over 31, puts and over 15, calls were traded on Monday, skewing the open interest numbers even further in favor of put options. However, because the call box and put box are relatively equal in size, it tells us that the growing percentage of call options has only mildly skewed expectations lower.

A far more complacent outlook is implied. The purple lines on the chart are generated by a day Keltner Channel study set at four times the ATR. Sellers can quickly revise or relist multiple listings at once from their Seller Hub Listings - opens in new window or tab section. Here's how:. Your bulk listing will be shown to buyers until you've sold all your items.

When the quantity runs out, the listing will end. However, if you regularly restock that item, you can use our out-of-stock option to hide your listing from search results until you refill the quantity. Learn more about our seller performance standards. Fee amounts are based on the terms in effect when you create the listing and when it renews. Learn more about our standard selling fees.

When that happens, the listing will end and you will need to pay a fee to list it again. However, if you regularly get more stock of that item, then you should use the out-of-stock option.

Your listing will then be hidden from search results, but as soon as you increase the quantity again, the listing will reappear in searches without relisting fees will be applied.