Bonawyn Eison Sees Unusual Options Activity In PayPal

On CNBC's "Options Action," Bonawyn Eison said puts and calls were roughly inline in Paypal Holdings Inc PYPL on Tuesday.

The company is going to report earnings on Wednesday and the options market is implying a move of 7% in either direction by the end of the week. The average move over the last four fiscal quarters is around 5.75%.

During the session, Eison noticed a purchase of around 3,000 contracts of the February 5, $250 strike calls for $7.70. The break-even for the trade is at $257.70 or 3.45% above the closing price on Tuesday.