On CNBC's "Options Action", Dan Nathan said that there was some interesting options action in Sprint Corp S on Thursday. The put options volume was 10 times the average daily volume.
When the stock was trading at $5.95, Nathan noticed that someone bought 10,000 contracts of the May 6/5 put spread for $0.25. The trade breaks even at $5.75 and if the stock trades to $5 at the May expiration, the trade would reach its maximal profit of $0.75.
Nathan added that back in April T-Mobile Us Inc TMUS launched a $26 billion bid for Sprint. If any issues arise about the deal, the stock could decline to $5, explained Nathan.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
