Dan Nathan Sees Unusual Options Activity In Sprint

On CNBC's Options Action, Dan Nathan spoke about unusually high options activity in Sprint Corp S. He said the call options volume was two times higher than the put options volume.

When the stock was trading at $8.30, there was a buyer of 5,000 contracts of the June 10 calls for $0.20. The trade breaks even at $10.20 or 21.57 percent above the closing price on Thursday.

Nathan added that $7 looks like a strong support for Sprint and he also thinks $10 is a strong resistance. He thinks the purchase of the upside calls makes sense only for traders who expect a takeover. He would wait for the stock to drop to $7.