Upside Calls Active on Sprint Nextel (S)
Upside Calls Active on Sprint Nextel (S)
Shares of Sprint Nextel Corp. (S) are on the move higher this morning, currently up by 3.13%, trading at $4.95. The stock has been on a major tear over the past four months, jumping off of the $2.33 level and more than doubling in value.
There have been some large block trades in the name today. The majority of the action is coming on the October $4.50 and $5.50 strikes, where buyers are snatching up calls.
On the Oct $4.50 call, 11,437 contracts were purchased, on the offer, for $0.57. The bid/ask spread was $0.54/0.57 at the time of the trade. Similar activity was seen at the same time on the Oct $5.50 call, where a large block traded, on the offer, for $0.14. The bid/ask spread was $0.12/0.14 at the time of the trade.
Volume is far exceeding open interest on both strikes.
What is really interesting here is that this appears to be a call stupid and not a call spread. A ìstupidî trade is where both strikes are purchased. This is traditionally indicative of one of two things: a very bullish trader looking to gain exposure to a sharp upside move, or a short stock trader looking to hedge his or her position with long calls.
Sprint Nextel Corporation is a holding company, with its operations primarily conducted by its subsidiaries. The company operates in two segments: Wireless and Wireline.
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