EBay drew a surge of upside option activity late yesterday as the stock climbs off its recent lows.
Most of the activity built in the final hour of trading, with aggressive buying in the October 29 calls for $0.86 to $1.03, according to OptionMonster's real-time tracking systems. Volume was above 8,000, almost double the open interest in the strike.
The stock was trading above $34 in late July after management provided an encouraging outlook for the third quarter and raised expectations for the year. But in only a few weeks later eBay was driven lower and pushed all the way down to about $27.
Yesterday it climbed 2.52 percent to close at $30.14. The overall call buying was impressive, outnumbering calls by about 5 to 1, and pushed total option volume in the name to twice its daily average.
The company is scheduled to report its next earnings results on Oct. 25, three sessions after the October options expire.
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of .