eBay Options Trading: March 2026 Contracts Create Opportunities

Investors are eyeing eBay Inc.'s new options with expiration in March 2026. The $57.50 put offers a potential buying opportunity, while the $72.50 call can yield a significant return if exercised. These contracts may influence eBay's stock price as traders seek to capitalize on market conditions.

Date: 28-01-2025

AI Rating: 6

Impact of New Options Trading
eBay Inc. (Symbol: EBAY) has recently introduced new options contracts with an expiration date in March 2026. This development could influence the stock price as traders and investors look for opportunities to maximize their returns.

Put Options
The put contract at the $57.50 strike price bids at $3.35, creating a scenario where investors could potentially buy shares at a discounted effective price of $54.15, before commissions. Given that this strike represents a 14% discount to the current stock price of $67.06, it might attract investors who are considering entering a position in eBay. Should the put contract expire worthless, investors can secure a 5.83% return on their cash commitment, projected at an annualized rate of 5.11%.

Call Options
On the options call side, the $72.50 strike price's current bid of $6.35 suggests a possible total return of 17.58% if eBay's stock were called away at expiration. This moderate upside could impact investor sentiment positively if stock appreciation predictions hold. However, with a 50% chance of the call option expiring worthless, investors might still retain their shares and benefit from the premium collected, reflecting a potential YieldBoost of 9.47% (or 8.31% annualized).

Volatility Considerations
The implied volatilities for put and call contracts are 31% and 29%, respectively, comparatively higher than the trailing twelve-month volatility of 27%. Higher implied volatility generally indicates increased market expectations of stock movement, which could affect stock prices as investor sentiment fluctuates.

Stocks: EBAY