Sprint Nextel (S) is up 57 cents to $8.46 and calls are seeing active trading after the Wall Street Journal reported that Deutsche Telekom (DT) is mulling a possible bid for the company. Roughly 15,000 S call options have traded, or more than ten times the number of puts. The report says the deliberations are in a very early stage and, if a bid is launched (which is certainly not assured), it could be weeks or even months away. Consequently, a lot of todays speculative buying seems focused on the Sprint August and January calls.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.