Is Icahn Buying eBay Inc (EBAY) Options?

When it comes to the wonderful world of online auctions, there is no company with more power than eBay Inc (NASDAQ:EBAY). With this in mind, many continue to wonder when its stock price is going to take off. One such person may be Carl Icahn.

When you look back at how eBay performed in 2013, it is easy to see how it lagged behind many of its internet based peers. In fact, when you look back at the past year you will see that the stock was stuck between $55 and $58.

In a recent CNBC video, the topic of eBay stock came up with the host taking a close look at a purchase, during the lows of the year, when somebody looked out to July and they bought 50,000 of the July 65 call spread.

The video goes on to talk about how Icahn was looking at the company during the time that this purchase happened. For this reason, as many others would assume, he had to be the one that made this play.

Then in November and December, there was more of the same. There were 50,000 call options purchased on December 26 along with 32,000 purchased on January 14, which was only a couple weeks back.

Here is the most interesting note from the video, as spoken by the host: “As the stock languished over the past year, option open interest would flat line just like this. And then all of a sudden we see this huge spike of interest, and obviously it has to do with those big call purchases.”

While not many believe that Icahn was involved in the short dated stuff, when you take a longer view of what is going on, looking out to July, this is when it makes more sense that he could have been the one involved.

This is an interesting story that is well worth keeping an eye on as the next few months go by and more information is leaked. Nobody knows for sure if Icahn is the one who was doing the bidding on eBay calls, but there is plenty of speculation. What are your thoughts on this? If it was Icahn, do you agree with this move?

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!