Call Spread on EBAY on 12/11/2012

It is your choice, to have a garage sale or sell it on EBAY! Most people have recently elected to sell it on eBay and that has been good news to eBay investors. eBay (EBAY) provides online platforms, services, and tools to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. You can pay for your trade using the company's PayPal system too.

Its Marketplaces segment operates ecommerce platform eBay.com; vertical shopping sites, such as StubHub, Fashion, Motors, and Half.com; and classifieds Websites, including Den Blå Avis, BilBasen, Gumtree, Kijiji, LoQUo, Marktplaats.nl, mobile.de, Alamaula, eBay Anuncios, eBay Kleinanzeigen, and eBay Annunci, as well as provides advertising services. The company’s Payments segment offers payment and settlement services for consumers and merchants on and off eBay Websites and other merchant Websites. Stock last traded at $51.75

Here is the trade:

Buy One January $50 Call Option at $2.68

Sell One January $55 Call Option at $0.68

Net Investment: $2.00

Maximum Return:  $5.00 if stock reached $55 by or before expiration date

Maximum Loss:  Maximum loss $2.00 if stock closes below $50

Trade Buy 1 January $50.00 Call at $2.68 Sell 1 January $55.00 Call at $0.68 For a net debit of $2.00 Profit/Loss Analysis Breakeven at $52.00 Maximum profit is $300.00 at strike of $55.00 Maximum loss is ($200.00) at strike of $50.00 Closing Summary Sold 1 January $50.00 Call at $3.30 Bought 1 January $55.00 Call at $0.55

Position closed on 1/2/2013 at price of $2.75 with a 37.50% gain in 22 days.

Updates

1/2/2013 11:20:15 AM

We are closing the EBAY trade. We sold the Jan $50 call at $3.30 today

We bought the Jan $55 call at $0.60

The net return was $2.70, compared to our initial investment of $2.00 for a 35% return

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