T-Mobile US, Inc (TMUS) is a provider of mobile communications services in the U.S., Puerto Rico, and the U.S. Virgin Islands. The company’s stock is currently trading around $30.85 in a 52 week range of $16.01-$34.10. The stock has been doing relatively poorly this year with shares falling 8.65% year to date. Despite the stock’s relative weakness this year options traders are betting on some short term upside in TMUS. Earlier in today’s trading session a trader bought 2,187 TMUS Apr 25th weekly 31 calls for $0.55. This is a 1 week bet that the stock will trade above the breakeven of $31.55 on expiration. While weekly calls can be risky on a risk vs. reward basis I like this trade setup.
My trade: Buying the TMUS Apr 25th Weekly 31 Calls for $0.62
Risk: $62.00 per 1 lot
Reward: Unlimited
Breakeven: $31.62
Andrew Keene
KeeneOnTheMarket.com
