OptionsHouse

Options Trading News

May 17, 2013  Fri 12:20 PM CT

TMUS: SEE CHART GET CHAIN FIND STRATEGIES
T-Mobile US has treated the bulls very well, and they keep coming back for more.

optionMONSTER's Heat Seeker monitoring system detected frequent call buying in the wireless company in March and April, when it still was called MetroPCS Communications. It's been rampaging higher since, throwing off profits of several hundred percent again and again.

The name is lighting up our screens today, this time with buyers paying $0.49 and $0.50 for the August 22 calls. An even 2,500 of the contracts were purchased in volume that dwarfed the previous open interest of just 4 contracts.

Once again, investors have locked in a purchase price using long calls. The traders stand to enjoy significant leverage if the stock continues to climb while limiting the amount of money they can lose if it drops. (See our Education section)

TMUS is up 0.36 percent to $19.76 this afternoon and has risen 19 percent so far this year. Its name was changed on May 1 after merging with Deutsche Telekom's T-Mobile business.

Calls outnumber puts by a bullish 6-to-1 ratio so far today, according to the Heat Seeker.
Share this article with your friends


Related Stories

TMUS

Notable option activity in equities

June 10, 2015

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »