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Mike Khouw Sees Unusual Options Activity In eBay Inc


On CNBC's Options Action, Mike Khouw said that he noticed unusually high options activity in eBay Inc (NASDAQ: EBAY) on Tuesday.

Three times average daily call options volume was traded and 18 of 20 most active options of the day were call options, explained Khouw. He added that there was a big activity in early trading in the February 56 call options which expire on next Friday.

Traders were paying $0.50 for these options, which sets the break even for the trade at $56.50 or approximately 2.5 percent higher at the expiration.

Khouw thinks that this bullish activity is linked to the Goldman Sachs conference on Wednesday morning.

Posted-In: CNBC Mike Khouw Options ActionOptions Media Trading Ideas


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