$EBAY call prices get bid up

It took just over a week for bullish option traders to see their upside call positions turn exponential profits in eBay (EBAY).

On Oct. 13, Market Rebellion’s Unusual Activity Service found that 6,800 Weekly $78 calls, expiring today, were bought for $0.36 to $0.41 above the existing open interest of 193 with shares at $74.19.

Those calls traded up to $1.72 this session, over 4 times their purchase prices. The stock rose 7.47% at the same time, illustrating the kind of leverage that can be achieved quickly with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

EBAY was last up 4.8% to $79.87 in afternoon trade.