eBay Inc. (EBAY) Bulls Target Record Highs

Short-term calls are in high demand in eBay Inc's (NASDAQ:EBAY) option pits

by Karee Venema

Published on May 28, 2015 at 3:22 PM
Updated on Jun 24, 2020 at 10:16 AM

Call traders are flooding eBay Inc's (NASDAQ:EBAY) options pits today, with the contracts crossing at six times the average intraday pace. By the numbers, 62,000 calls have changed hands versus fewer than 8,900 puts. Meanwhile, short-term contracts are in high demand, as evidenced by EBAY's 30-day at-the-money implied volatility, which is up 13.4% at 20.1%.

Most active by a mile is the July 62.50 call, where more than 18,200 contracts are on the tape. It seems safe to assume new positions are being purchased here for a volume-weighted average price (VWAP) of $0.87, making breakeven for today's call buyers $63.37 (strike plus VWAP). A move north of here would mark a record high for shares of EBAY.

Today's accelerated call activity just echoes the withstanding trend seen in EBAY's options pits in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 2.79 sits in the 86th percentile of its annual range.

Looking at the charts reveals eBay Inc (NASDAQ:EBAY) has put in a strong technical showing of late. Since hitting its most recent low of $55.40 in mid-April, the stock has tacked on 9.4%. What's more, at $60.63, the shares are currently lingering just south of their all-time peak of $60.93, tagged on March 9.

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