Ebay has been showing signs of improving business trends, and now some investors are betting on a New Year's rally.
Money streamed into the January 29 calls, which traded 11,550 contracts against open interest of 1,521. Most of the volume priced for $0.06, according to
Ebay rose 0.6 percent to $23.59 yesterday. The online auction giant doubled between March and July, when it gapped above $20 on a bullish forecast. Shares have been drifting lower after hitting a new 52-week high last week, despite reporting better-than-expected results on Oct. 21.
The stock has spent the last four months trying to break through the $25 level that served as support in 2008. Some traders may expect a quick run higher if they break that point of resistance.
The stock needs to climb 23 percent by expiration for the calls to turn a profit. Other investors purchased the January 27.50 calls for $0.10 to $0.12. Volume was slightly above open interest at 9,602 contracts.
Overall options volume in eBay was about twice the average level, with call buying accounting for more than half the activity.
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David Russell is a reporter and writer for .