Long-term bet targets bid in eBay

optionMONSTER

Shares of eBay are flat on the year, but one trader is looking for the stock to break out by early 2015.

optionMONSTER's Heat Seeker system detected the purchase of 5,000 January 2015 70 calls, with the largest blocks going for $1.54. The volume was above the strike's previous open interest of 3,215 contracts, indicating that this is a new position.

These long calls lock in the purchase price for the stock for the next 13 months no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, but the contracts will expire worthless if shares remain below $70. (See our Education section)

EBAY fell 1.06 percent yesterday to close at $51.37. The online auction house has bounced between $48 and $58 all year and is now essentially back where it was at the beginning of January.

Total eBay calls outnumbered puts by more than 2 to 1 yesterday.

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