By Caitlin Duffy, Contributor

Trading traffic in weekly calls on eBay suggests some traders are preparing for shares in the name to rebound this week, with upwards of 2,600 lots in play at the Mar. 22 ’13 $52.5 strike versus open interest of 1,122 contracts. It looks like most of the call options were purchased earlier in the session at an average premium of $0.08 each. Call buyers may profit at expiration this week in the event that EBAY shares rally 5.4% over the current price of $49.90 to top the average breakeven point at $52.58. Upside calls are also active at the April $52.5 and $55 strikes, with upwards of 3,000 contracts trading at each against sizable open interest levels by midday on the East Coast. …read more
Source: FULL ARTICLE at Forbes Latest