Trade sees less movement from Sprint

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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.

S 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. (See our new researchLAB service for more)

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 short strangle , 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 Education section)

The transaction accounted for most of the option volume in the name so far today.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: S

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