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Dan Nathan Sees Unusual Options Activity In Sprint

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On CNBC's Options Action, Dan Nathan spoke about unusually high options activity in Sprint Corp (NYSE: S). He said the call options volume was two times higher than the put options volume.

When the stock was trading at $8.30, there was a buyer of 5,000 contracts of the June 10 calls for $0.20. The trade breaks even at $10.20 or 21.57 percent above the closing price on Thursday.

Nathan added that $7 looks like a strong support for Sprint and he also thinks $10 is a strong resistance. He thinks the purchase of the upside calls makes sense only for traders who expect a takeover. He would wait for the stock to drop to $7.

Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media

 

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