After a volatile ride, one investor is looking for Sprint Nextel
to calm down.
The wireless-phone stock whipsawed violently on Oct. 7 and Oct. 10,
ripping as high as $3.39 after
bullish call buying
and then dropping as low as $2.10 on concerns it will need to spend
heavily on its network.
remained between those two levels since then and is down 1.7
percent to $2.82 today. It also reported better-than-expected
results on Oct. 26 as subscribers and per-user revenue increased.
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An investor sold about 20,000 contracts each in the December 2.50
puts for $0.15 and the December 3.50 calls for $0.07. Volume was
more than 8 times open interest in both strikes.
Known as a
, the trade resulted in a credit of $0.22. The investor will get to
keep that money if S remains between $2.50 and $3.50 through
expiration. (See our
The transaction accounted for most of the option volume in the name
so far today.
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