Options activity is ramping up after upbeat earnings and executive news
eBay Inc (NASDAQ:EBAY) is seeing unusual options activity today, with 18,000 calls and 15,000 puts traded so far -- 5 times the average intraday volume. The weekly 5/2 71-strike call is seeing the most action, followed by the 68-strike call from the same series, with new positions being opened at both strikes.
The surge in activity follows news that CFO Steve Priest will step down in May, to be replaced by Peggy Alford, a current executive at PayPal (PYPL). The company also reported better-than-expected revenue for the first quarter and issued an upbeat second-quarter forecast. However, eBay cautioned that it remains vulnerable to increased tariff costs and lingering trade tensions tied to President Trump’s policies.
Today’s rush of call buying marks a notable shift in sentiment. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), eBay stock’s 10-day put/call volume ratio of 7.86 ranks higher than 99% of readings from the past year, suggesting puts have been picked up at a much faster-than-usual pace in recent weeks.
Despite the upbeat headlines and bullish options flow, EBAY is trading lower this afternoon. The stock opened higher, briefly topping the $70 level for the first time since early March, but was last seen down 1% at $67.51 -- pulling back from its year-to-date gain of over 10%. Technically, the 126-day moving average near $65 remains a key area of support, having helped contain multiple pullbacks throughout April.