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Option Clips: eBay Inc, Neonode, Inc, and Questcor Pharmaceuticals Inc

Reviewing notable options activity on eBay Inc, Neonode, Inc, and Questcor Pharmaceuticals Inc

by 2/27/2014 2:59 PM
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Three equities generating chatter on StockTwits and among options traders today are online auction pioneer eBay Inc (NASDAQ:EBAY), electronics manufacturer Neonode, Inc (NASDAQ:NEON), and biopharmaceutical concern Questcor Pharmaceuticals Inc (NASDAQ:QCOR). Here's a look at how traders have been aligning their speculative bets today.

  • As the tension-filled dance continues between activist investor Carl Icahn and eBay Inc (NASDAQ:EBAY), the Internet company's shareholders have lifted it to a new all-time high of $59.27. Call volume is running at a pace that is nearly nine times hotter than usual, with one massive bull call spread in focus. All told, more than 40,000 March 62.50 calls were purchased to open while the same number of March 65 calls were sold to open, for a net debit of 24 cents per spread (based on the volume-weighted average prices at the strikes). The breakeven price of $62.74 -- long strike plus the net premium paid -- is roughly 7.2% north of the stock's current price of $58.50.

  • Neonode, Inc (NASDAQ:NEON) has had quite the month, appreciating more than 32% since the end of January. With the stock up an additional 3% at $7.52 today, call volume is running at more than twice the normal intraday pace, and there is a particular focus on the out-of-the-money March 9 call. It appears that speculators are buying to open these calls on the hopes that NEON will continue to gain ground over the next few weeks.

  • Questcor Pharmaceuticals Inc (NASDAQ:QCOR), on the other hand, has been in a downward spiral since Tuesday evening's earnings report, which fell short of analysts' top-line estimates. The stock was added to the short sale restricted list yesterday, and has continued into the red today, currently off 9% at $67.50. Not surprisingly, puts remain popular, and put volume today is 10 times typical levels. In fact, eight of the 10 most active QCOR strikes currently are on the put side.

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