Turning to the calls side of the option chain, the call contract at the $55.50 strike price has a current bid of $1.80. If an investor was to purchase shares of EBAY stock at the current price level of $54.79/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $55.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.58% if the stock gets called away at the May 23rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if EBAY shares really soar, which is why looking at the trailing twelve month trading history for eBay Inc., as well as studying the business fundamentals becomes important. Below is a chart showing EBAY's trailing twelve month trading history, with the $55.50 strike highlighted in red:
May 23rd Options Now Available For eBay
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