April showers often bring May flowers, and this month, that could happen in parts of the stock market.<\/p>\n
Some of April's biggest laggards \u2014 which include Penn National Gaming, Enphase Energy, Discovery, Intel, eBay and Boeing \u2014 could see big reversals in May, two traders told CNBC's "Trading Nation" on Friday.<\/p>\n
EBay's post-earnings drop, for one, is "a great reason to buy the stock," said Danielle Shay, director of options at Simpler Trading.<\/p>\n
"This is a really good company. They've seen amazing growth throughout the pandemic," Shay said. "While they're trying to be cautious for next quarter, I do think that people are going to continue to buy online."<\/p>\n
With the stock now down near its 200-day moving average just above $55, Shay said options traders could "sell some put credit spreads, sell some naked puts" or simply "pick up the stock at these levels."<\/p>\n
"I'm looking for it to actually do really well next quarter," she said. "EBay's my pick here and I'm sticking with online shopping."<\/p>\n
Boeing could do well in May if it manages to break above a key level, Piper Sandler senior technical research analyst Craig Johnson said in the same "Trading Nation" interview.<\/p>\n
"This is a stock that has sold off 7% over the month of April," he said.<\/p>\n