eBay Inc (EBAY) Call Volume Nears Peak Levels Ahead of Earnings

eBay Inc (NASDAQ:EBAY) will take its step in the earnings confessional ahead of Thursday's open

Jul 13, 2015 at 2:43 PM
facebook X logo linkedin


eBay Inc (NASDAQ:EBAY) is flying today, up 1.6% at $63.34 -- and fresh off a record high of $63.74. This volatile price action could continue as the week wears on, with the company slated to report earnings Thursday morning and make its Paypal Holdings Inc (NASDAQ:PYPLV) spinoff official on Friday. (PYPLV, meanwhile, will begin trading publicly next Monday, July 20.) Today's pop is likely pleasing option traders, who have been initiating long calls over puts at a rapid-fire rate.

Specifically, speculators at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 5.80 calls for each put over the past 10 sessions. What's more, this ratio ranks in the 96th annual percentile, meaning calls have been bought to open over puts with more rapidity just 4% of the time within the past year.

Echoing this is EBAY's Schaeffer's put/call open interest ratio (SOIR) of 0.46. Not only does this show that call open interest more than doubles put open interest among options expiring in three months or less, but it sits lower than 84% of all similar readings taken in the past year. Simply stated, speculative traders are more call-skewed than usual toward the equity.

Drilling down on the front-month series, peak call open interest of 26,578 contracts is found at the July 62.50 strike. According to data from the ISE, CBOE, and PHLX, almost 11,000 calls have been bought to open here since mid-April. In other words, speculators have been betting that EBAY would be north of $62.50 at this Friday's close -- when the series expires.

The 62.50 strike is also in focus today, only it's the October series that's garnering attention. Specifically, it appears one eBay Inc (NASDAQ:EBAY) is selling to close her October 62.50 calls and rolling them up to the October 65 strike. According to Trade-Alert, this appears to be part of a larger three-way bull spread initiated in mid-March to bet on higher highs for the security.
 

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