Calls see more upside in Sprint

optionMONSTER

Sprint bounced sharply last month, and the bulls are looking for the next leg higher.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 40,000 June 11 calls for $0.07. Some 20,000 June 9 calls were sold at the same time for $0.55, but volume was below open interest in those contracts, so it appears that an existing position was rolled to the higher strike and increased in size.

The investor collected $820,000 and remains positioned to profit from further gains in the wireless-communications stock through the new long calls . The trader also raised the price at which he or she can get long and doubled the number of contracts. (See our Education section)

S fell 0.44 percent to $9.06 yesterday. It traded as low as $7.38 on April 28 but jolted sharply higher late in the month and has been consolidating above its 50-day moving average in recent weeks. Based on yesterday's activity, the trader apparently thinks that the stock may run back toward its 52-week high above $11 by the third Friday of June.

Sprint's total option volume yesterday was triple its daily average, with calls outnumbering puts by more than 4 to 1.


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