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eBay (EBAY) is up 24% over the last year, slightly lagging the overall market. One trader sees shares trending higher through the end of next year.
That’s based on the January 2026 $50 calls. With 668 days until expiration, 4,709 contracts traded compared to a prior open interest of 212, for a 22-fold rise in volume on the trade. The buyer of the calls paid $10.70 to make the bullish bet.
eBay shares recently traded for just over $52, meaning the options are already about $2 in-the-money, and have about $8 in premium for nearly two years of time to play out. eBay is trading near its 52-week high of $52.82.
Operationally, eBay has been treading water. Revenues rose just 2% last year, and earnings expanded by 8%.
However, eBay is inexpensive at 11 times forward earnings, and the retailer has a 24% profit margin, far better than the sector on average.
Action to take: Investors may like shares of eBay here. The stock is in a strong uptrend, and likely has more upside in the months ahead. At current prices, eBay also pays a 2.1% dividend.
For traders, the January 2026 calls have a long time to play out, but could likely see massive gains with a potential two-year runway for shares.
More aggressive traders could look for an option expiring in the next 3-6 months to profit from the current strong uptrend.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.