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

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).