EBay Inc (EBAY) $31.24 +2.33%

| October 6, 2011 | 0 Comments More

EBAY adds 62 cents to $31.17 and is on a three-day 10.8 percent run higher. Some investors apparently see the strength as an opportunity to write April 35 calls on the stock. The top trade is a 4,453-contract block at $2.35 on ISE and an opening seller, according to data from the exchange. 18,321 now traded against 592 in open interest. The contract is 12.2 percent OTM with a .42 delta. A total of 30,000 calls and 5,900 puts traded on Ebay so far today. Oct 32, Oct 33, Jan 31, and April 41 calls are seeing interst as well. Implied vols are down about 5 percent to 52.

Category: All Stocks, Large Cap Stocks, Retail

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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.