Bulls Applaud eBay Inc.'s (EBAY) Quarterly Profit Revision

eBay Inc (EBAY) call buying has picked up today

Digital Content Group
Feb 6, 2015 at 11:36 AM
facebook twitter linkedin


eBay Inc (NASDAQ:EBAY) is up 0.8% today at $54.71, after upwardly revising its fourth-quarter profit by nearly $90 million. The news has options bulls licking their lips, as calls are trading at twice the normal intraday pace.

Jumping right in, speculators are targeting the March 55 and 57.50 calls, with data suggesting mostly buy-to-open activity. These traders are looking for EBAY to eclipse the respective strikes by the close on Friday, March 20, when back-month options expire.

Longer term, the equity's options traders have been extremely put-focused. In fact, EBAY's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio is at an annual high of 2.12. In other words, speculators have bought to open the stock's puts over calls at a faster rate in the past two weeks than at any point in the past year.

Elsewhere on the Street, sentiment is mixed. Of the 26 covering brokerage firms, half rate EBAY a "buy" or better, with the remaining 13 analysts handing out "hold" or worse recommendations.

Recently, eBay Inc (NASDAQ:EBAY) has struggled on the charts. Specifically, the shares have dropped 4.5% since their Jan. 23 peak at $57.28, bringing their year-to-date loss to 2.5%.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners