Market News

October 13, 2016  Thu 9:35 AM CT

Traders are looking for more gains in eBay after quarterly results next week.

optionMONSTER's monitoring system detected the purchase of about 8,000 October 34.50 calls for $0.27 to $0.33 today. Volume was more than 12 times open interest at the strike, which indicates 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 down 0.38 percent to $31.38 in morning trading but is up 21 percent in the last three months. The online-auction giant is scheduled to report earnings after the close next Wednesday, Oct. 19, two sessions before today's calls expire.

Overall option volume is about average in EBAY so far today, but calls outnumber puts by a bullish 6-to-1 ratio.

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