Weekend Trader Series
September 21, 2025
Open Positions Update
- The Shopify (SHOP) October 17, 2025, 135-strike call was closed after hitting its target profit of +100%. If you have not already done so, please close out of your SHOP position at the earliest opportunity.
The following is this week's recommendation:
eBay (EBAY)
Place a limit order to buy the eBay (EBAY) December 19, 2025 87.50-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, September 19, this option was offered at $8.40. EBAY closed at $91.11 on Friday, September 19.
Do not attempt to enter this position after Monday's close.
Please use the following guidelines to manage the position:
- Exit the position if the option is at a 100% gain from your entry price.
- If the option has not reached its target profit by 3:00 p.m. Eastern time on Monday, October 20, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
eBay (EBAY) stock is trading 10% below last month’s all-time high, and just above its 50-day moving average, the latter of which has strong quantified historical results the last four pullbacks. The e-tailer’s earnings aren’t until late October, and the shares troughed a month ahead of the company’s last three quarterly reports.
There’s contrarian potential in the meantime. Of the 33 brokerages covering EBAY, 23 maintain “hold” or worse ratings. That’s a lot of pessimism for a stock that hit an all-time high in August and scored a 18.4% post-earnings bull gap in July. Shorts sellers are in covering mode, but 4% of the stock’s total available float is sold short, and bearish bets remain 50% above the short interest floor of 2023.
In the options pits, there’s put open interest support at the 89 and 90 strikes through October. Stepping back, short-term options traders have been much more bearish than usual, per EBAY’s Schaeffer's put/call open interest ratio (SOIR) of 1.84 ranking in the 90th percentile of readings from the past 12 months.
Our recommended December 87.50 call has a leverage ratio of 6.9 and will double on a 14.5% rise in the underlying security.
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