T-Mobile Stock Inches Higher as TV Service Wraps Up

T-Mobile customers will be given discounts on Google's YouTube TV service

Deputy Editor
Mar 30, 2021 at 10:51 AM
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The shares of T-Mobile Us Inc (NASDAQ:TMUS) are up 0.3% at $123.76 at last check, after announcing TVision, the wireless carrier's live television service, will stop operating at the end of April. Customers will now be offered discounts to subscribe to Google's YouTube TV service, which is part of an expansive new multi-year deal between T-Mobile and Alphabet (GOOGL) -owned Google. The company's CEO, Mike Sievert, called the move a "big upgrade," noting that YouTube TV has twice as many channels as TVision Live. 

The security has struggled for direction on the charts since claiming a record-high close of $135.54 on Jan. 11. The 200-day moving average, an area of long-term support, acted as a floor for the equity's February pullback, and TMUS is up 48.5% year-over-year.

The options pits lean bullish, per T-Mobile stock's 50-day call/put volume ratio of 3.11 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 94% of readings from the past year, indicating a healthier-than-usual appetite for long calls over the last 10 weeks.

Echoing this, TMUS's Schaeffer's put/call open interest ratio (SOIR) of 0.45 stands in the low 6th percentile of readings from the past year. In other words, short-term option traders have rarely been more call-biased. 

Plus, these premiums are attractively priced at the moment. The stock's Schaeffer's Volatility Index (SVI) of 25% stands higher than just 12% of all other readings in its annual range, implying options players are pricing in relatively low volatility expectations at the moment. 

 

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