Options Players Positioning for eBay (Nasdaq:EBAY) Downside Action

Options traders appear to be positioning themselves for downside action in regard to eBay (Nasdaq:EBAY) when they report earnings in the middle of January.

Susquehanna said that "these investors are setting themselves up for a downside move in shares from current levels, likely as either an outright bearish play or as a hedge for underlying positions going into earnings which are expected on 1/19/11, which falls within the January options cycle."

Close to the opening bell on Friday, traders acquired close to 10,000 January 30 (.45d) puts for as high as to $1.09. Then, traders later in the morning went on to buy about 20,000 January 29 (.35d) puts.

Analysts expect revenue of $2.48 billion from eBay and EPS of $0.47 for the quarter.

eBay closed Friday at $29.82, down $0.71, or 2.33 percent.