Mike Khouw Sees Unusual Options Activity In Sprint

On CNBC's "Options Action", Mike Khouw spoke about unusually high options activity in Sprint Corp (NYSE: 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.

See Also: What's Up With Sprint And T-Mobile?

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 (NASDAQ: 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.