$EBAY took quite the tumble today closing down over 1.4%. The stock could not catch any type of momentum, even as the market clawed its way higher early in the session. Option trading volume was skewed 3-1 toward the calls in spite of today's weakness. The $50.50 the $55 and the $57.50 calls saw the most trading action on the call side. The $55 and $50 October puts were seeing the volume from those betting for downside.
I think today's trading action was a great oppirtunity to buy for a move higher after the bell tomorrow. I like the $55, $55.50 monthly calls for earnings and I think $EBAY is a $60 stock in the near future.
I like the channel $EBAY has been trading in for the last year. It's time to break out of that channel, and that break will come to the upside. This earnings report could be what finally drives $EBAY out of this channel.
The $55 and $55.50 calls are attractive heading into tomorrow nights report. The $55 calls are $1.00 the $55.5 calls are $.82. Both could see strong gains at the open on Thursday.