Jon Najarian IDs Unusual Call Buying in Telecom
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DocJ is always looking for unusual options activity, and his proprietary heat seeker has found something.
“I’m seeing a lot of activity, a lot of buying of the Jan 3 calls in Sprint and selling in the Jan 5 calls,” he says.
“Volume was 77,000 – that translates into 7.7 million shares."
That's pretty heavy volume. And it suggests by the third week of January, institutional investors expect Sprint to trade well above $3.
"It's a long-term bullish bet," he tells us.
Of course, the options trade begs the question if there's a fundamental catalyst behind the bet - something that would drive the bottom line?
Najarian thinks there is. Thursday, Sprint said its Virgin Mobile prepaid business would start selling the Apple iPhone later this month.
Posted by CNBC's Lee Brodie
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