Strangle Purchased on eBay (EBAY)

Shares of eBay Inc. EBAY are higher on the session by 0.14%, currently trading at $22.19. The stock has been trading largely sideways since a sell off in May; EBAY is once again hovering around the $22.50 level. One trader has purchased a strangle on shares today, though, which suggests that volatility will increase on the name. The July $21/24 strangle was just purchased 4,200 times, for $0.39; volume did not exceed open interest on either strike. Given the open interest, this could be an opening or closing transaction; either way, this represents a trader believing that eBay could move above $24.39 or below $20.61 during July. eBay Inc. connects buyers and sellers globally on a daily basis through eBay, an online marketplace located at www.ebay.com, and PayPal, which enables individuals and businesses to send and receive online payments through www.paypal.com. The Company has two business segments: Marketplaces and Payments.