Sprint Corporation (S): Pre-Earnings Option Players Grow Optimistic

Sprint Corporation will report earnings after next Monday's close

Oct 28, 2014 at 2:44 PM
facebook X logo linkedin

Like the broader equities market, Sprint Corporation (NYSE:S) is trading higher today -- up 1.5% to linger near $6.13. Option players are responding in kind, scooping up calls at a rate 1.7 times the average intraday pace. Based on the equity's 30-day at-the-money implied volatility (IV), which is 4.9% higher at 48.8%, short-term contracts are in high demand.

Drilling down, Sprint's weekly 11/7 6.50-strike call has seen the most action by far, with 11,129 contracts on the tape. The majority of the volume occurred when a multi-exchange sweep of 10,383 contracts was bought to open for $0.10 apiece, resulting in an initial cash outlay of $103,830 (number of contracts * premium paid * 100 shares per contract).

This also represents the most the speculator stands to lose, should S be sitting south of $6.50 at next Friday's close -- when the weekly series expires -- a time frame which includes the company's upcoming earnings report. Gains, meanwhile, will accrue with each step above breakeven at $6.60 (strike plus premium paid) the stock takes. Delta on the call is docked at 0.30, suggesting a less than 1-in-3 chance the option will be in the money at expiration.

As touched upon, Sprint Corporation (NYSE:S) is scheduled to unveil its third-quarter earnings report after next Monday's close. Over the past four quarters, the equity has fared well in the session subsequent to reporting, averaging a gain of 3.7%. This runs at a stark contrast to the stock's longer-term technical backdrop, though, with S down 43% year-to-date.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI