$EBAY call prices bid up

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

On Jan. 6, Market Rebellion’s Unusual Activity Service found that 2,300 Weekly $64 calls, expiring Jan. 10, were bought for $0.16 to $0.40 above the existing open interest of 241 with shares at $62.50.

Those calls sold for as much as $7.40 this session, a 1,750% return, while the stock rose 14.22% 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 ended the session up 9.86% at $69.40.