Are Higher Highs Ahead for eBay Inc. (EBAY)?

PayPal's purchase has helped power eBay Inc (EBAY) higher

Mar 9, 2015 at 2:14 PM
facebook X logo linkedin


M&A news has hit the Street in a flurry today, and earlier, eBay Inc (NASDAQ:EBAY) took out the $60 mark for the first time ever -- topping out at $60.74 -- on news its PayPal division has thrown its hat into the cybersecurity ring. Specifically, PayPal has purchased Israeli-based cybersecurity startup CyActive. In EBAY's options pits, meanwhile, speculators are rolling the dice on the stock surging to even higher highs over the next two months.

Diving deeper, buy-to-open activity has been detected at EBAY's May 65 call, easily the equity's most active option thus far. By purchasing the calls to open, speculators are echoing Baird's recent outlook, and are gambling on EBAY to topple the $65 mark -- a feat yet to be accomplished -- by the close on Friday, May 15, when the options expire. Delta on the call is docked at 0.27, suggesting a roughly 1-in-4 shot the option will be in the money at expiration.

Widening the sentiment scope reveals options traders have been scooping up puts over calls at an accelerated clip in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), EBAY's 50-day put/call volume ratio of 0.69 ranks in the 86th annual percentile.

Technically speaking, EBAY has been in rally mode since taking a sharp bounce off its 200-day moving average in early February -- up 15.4% to trade at $60.65. A continued rise may shake some of the weaker bearish hands loose, which could create an additional burst of buying power for eBay Inc (NASDAQ:EBAY).

Daily Chart of EBAY Since January 2015 With 200-Day Moving Average
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI