Sprint (S) Getting Bullish Option Action

Option traders continue to pour their money into Sprint (NYSE:S), believing the company still has plenty of upside to go.

"The activity is a continuation of a pattern that began on Feb. 23 when investors snapped up the May 4.50 calls for $0.20 to $0.23 and the May 5s for $0.08. The shares have been climbing since, and those calls have now appreciated by more than 100 percent and 250 percent," according to optionMONSTER.

"Today traders purchased more than 20,000 May 6 calls for $0.08 against open interest of just 3,751 contracts. The May 5s and April 5s are also seeing buying activity, though volume remains below open interest in the strike. Overall calls have outnumbered puts in the name by a bullish ratio of 7 to 1 so far today.

"The shares are up 2.77 percent to $4.83 in early afternoon trading. They got a shot in the arm on Tuesday after Reuters reported deal talk involving Deutsche Telekom, but there are other positive factors supporting the stock."

Sprint was trading at $4.84, up $0.14, or 2.98 percent, as of 1:54 PM EST.




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