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This stock is up 140% in the last year and has more room to run: Trader

  • Shares of Sprint have surged more than 140 percent over the past year as the company continues to slash prices.
  • Sprint announced Thursday it cut its unlimited data plan to $50 a month.

Comcast threw a wrench in the wireless wars this week by announcing the rollout of a wireless service, Xfinity Mobile, on Thursday.

Despite the increased competition, one trader bet that there's more room to run for telecom giant Sprint.

Shares of Sprint have surged more than 140 percent over the past year as the company continues to slash prices. Sprint announced Thursday it cut its unlimited data plan to $50 a month, making it the price leader among Verizon and AT&T.

Overall, the options market remained bullish on the telecom giant.

"Call volume [on Thursday] was two times that of puts," Dan Nathan said Thursday on CNBC's "Fast Money."

One trade that caught Nathan's eye was a buyer of 5,000 of the June 10-calls for 20 cents per options contract. The trader is betting that the stock will rise another 21 percent from current levels to close at $10.20 by June expiration.

"$10 is kind of interesting here when you think about it," Nathan said. He warned that the constant talk of M&A could affect names like T-Mobile and Sprint. "That's why you'd be buying upside calls in this thing — defining your risk to the upside."

On a technical level, Nathan pointed out that the Sprint chart "has some really good support down to the breakout level at $7. … I don't really love it [at its current level]. I would wait for a pullback to $7."

Sprint was trading at the $8.40 level during midafternoon trading on Friday.

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