Options Trading News

October 14, 2016  Fri 9:31 AM CT


eBay continues to draw upside option activity ahead of quarterly results next week.

optionMONSTER's monitoring system detected the purchase of 5,300 December 33 calls for $1.19 to $1.33 today. Volume was more than 7 times the open interest in the strike, which indicates that new money was put to work.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

EBAY is up 1.84 percent to $32.09 in morning trading and is up 20 percent in the last three months. The online-auction next set of numbers are scheduled to report earnings after the close on Oct. 19.

Overall option volume is about average in tha name so far today, but calls outnumbered puts by a bullish 22-to-1 ratio. It is the latest in a months-long streak of call buying in EBAY, as shown on the screen shot of our proprietary Activity Log below:

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