Steve Sosnick's Sprint Options Trade

Speaking on Bloomberg Markets, Steve Sosnick of Interactive Brokers suggested that traders should consider a bearish options strategy in Sprint Corp S.

He thinks that the stock is getting tired and he wants to sell the May 8/9 call spread for a credit of $0.40. If the stock stays below $8, he is going to collect the whole premium. The trade starts to lose money above $8.40 and it can maximally lose $0.60.