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Dan Nathan Sees Unusual Options Activity In Sprint

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On CNBC's "Options Action", Dan Nathan said that there was some interesting options action in Sprint Corp (NYSE: 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 (NASDAQ: TMUS) launched a $26 billion bid for Sprint. If any issues arise about the deal, the stock could decline to $5, explained Nathan.

Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media


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