Mike Khouw Sees Unusual Options Activity In Sprint

On CNBC's "Options Action", Mike Khouw spoke about unusually high options activity in Sprint Corp S. He said that call options volume was 14 times the average daily call options volume and a part of that volume was a big purchase of the October 9 calls.

Over 41,000 contracts of the October 9 calls were traded for 22 cents. The trade breaks even at $9.22 or 12.44 percent above the current market price. Khouw explained that options traders believe a potential deal with T-Mobile US Inc TMUS is going to be a positive catalyst for the stock. He added that sometimes these deals don't get closed, so it's better to use options to make bullish bets.