Options Traders Sprint To Buy Calls

Battered Sprint shares got a much needed boost this morning courtesy of the Justice Department.

But the action in the options pits was even more furious.

Sprint call activity outnumber put purchases by a ratio of 15:1 today, with nine of the 10 most active contracts being calls.

As of noon today, over 30,000 of the September 4-strike calls were bought at an average price of $0.15.

That may sound like a cheap bet to the upside, but simple math and the element of time suggests otherwise.

In order to make money on those 4-strike call purchases, Sprint stock would need to close above $4.15 by September expiration. Put another way, some traders are betting Sprint stock will rally 11% in the next 17 days.

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    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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