Puts Rolled on Sprint Nextel (S)

Shares of Sprint Nextel (S) are trading higher on the session by 0.52%, at $5.76. The stock has been on the rise over the past six months, culminating in a push to a new 52-week high after SoftBank agreed to acquire a 70% stake in the name.

The Options Insider flagged upside call activity in Sprint back on September 5^th, when the stock was trading at $4.95. The Oct $4.50/5.50 call stupid that was purchased for $0.71 that day has paid off handsomely. Sold on the bid today for $1.49, it would return 110%. Today, we are seeing a roll of puts.

A short while ago, the January 2013 $6.00 put was sold 11,328 times, near the bid, for $0.33 just as 11,328 Jan13 $5.50 puts were purchased, on the offer, for $0.13. Given the respective open interest on both strikes, 16,828 and 7,464 contracts, this looks like a roll out of the $6.00 strike and into the $5.50.

30-day implied volatility is retreating slightly today, down 0.5% to 21.28%. 10-day historical vol is registering 73.87%.

Sprint Nextel Corporation is a holding company, with its operations primarily conducted by its subsidiaries. The company operates in two segments: Wireless and Wireline. 

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.