TMUS Traipses Higher After Top- and Bottom-Line Beats

The mobile phone firm said its growing subscribers and expanding its 5G network

Digital Content Manager
May 5, 2021 at 10:08 AM
facebook twitter linkedin

T-Mobile Us Inc (NASDAQ:TMUS) is coming off its first-quarter earnings report, posting profits of 74 cents per share on revenue of $19.8 billion, topping analyst expectations. The company said it continued to add subscribers and expand its 5G network, sending the stock up 2% to trade at $131. 

The stock has received no less than four price-target hikes, the highest coming from Deutsche Bank to $188 from $185. The brokerage bunch was already bullish on TMUS coming into today, with a 12-month consensus price target of $162.21 -- a 26.3% premium to last night's close -- and 13 of the 15 analysts in coverage calling T-Mobile stock a "buy" or better. 

Option traders have also been overwhelmingly optimistic. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TMUS sports a 50-day call/put volume ratio of 4.05, which stands higher than all other readings from the past year. Plus, the security's Schaeffer's put/call open interest ratio (SOIR) of 0.25 stands in the extremely low 4th percentile of its annual range, meaning short-term option traders have rarely been more call-biased. 

The stock has made a valiant effort to separate itself from it's early pandemic trough, adding over 45% in the last 12 months. The security lost some of its momentum near the $135 mark -- briefly toppling the level in early January to hit an all-time high of $135.54, though this surge has since subsided. Most of this winter pullback,however, was captured by the equity's 200-day moving average. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1