Traders bid big on eBay

A flurry of options activity indicates that to the minds of many traders, eBay has a lot of room to run in the weeks ahead.

In the first 1 ½ hours of Wednesday trading, more than four calls were traded for every put on the company, which is typically an indication that traders are more interested in making bullish than bearish bets on a stock.

This comes after a busy Tuesday for eBay options, when three times the average daily call volume traded, and 18 of the 20 most active options were calls, as Mike Khouw noted Tuesday on CNBC's "Fast Money."

There appears to be a bias toward short-term options, with the February 56-strike calls being especially active on Tuesday, and serving as the most popular option on Wednesday morning. These calls expire on Friday, Feb. 20.

Read MoreEBay's breakup plans may open door for e-commerce M&A

EBay headquarters in San Jose, Calif.
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EBay headquarters in San Jose, Calif.

It is worth noting that this is not a massively bullish bet. Shares of eBay traded around $55 on Wednesday morning, and a rise up to $56 would merely make them flat on the year.

Still, while few may expect eBay to scream higher, short-term calls on the company could still present an attractive opportunity to traders.

In a weekly options research note dated Wednesday, Goldman Sachs identified eBay as one of the stocks in its universe with the most steeply upward-sloping volatility curves in the six-month/three-month term. In other words, traders are paying much more for six-month options than for three-month. This could mean that prices for short-term eBay options are attractively priced.

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  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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