Pete Najarian’s proprietary heat seeker is at it again. And the call activity it’s identified he sees as an opportunity.
Najarian tells us he’s seeing big volumes of August calls trading in Sprint, especially at the 5-strike.
That’s a bullish bet that Sprint will be trading higher by the third week of August.
And after the broadcast Najarian tells us although he prefers playing the thesis with options, if you’re a retail investor who only trades stocks, he'd consider the activity a buy signal.
“In the first half hour they traded over 34,000,” he says. “That’s huge volume.” You can't ignore something like that.
The bet may be technical - the stock is trading at 52-week highs and options investors may be expecting a break out.
The enthusiasm may also have something to do with an executive departure. The head of strategic planning, Keith Cowan, is leaving the wireless carrier by the end of next month.
According to reports, his tough dealmaking style in recent years had ruffled feathers on Wall Street and in the telecommunications industry.