Downside play in Sprint at highs

Heavy option action in Sprint is positioning for potential downside in the wireless carrier even as it hits highs today.

optionMONSTER systems show that a trader bought 11,296 January 7 puts for $0.16 and sold the same number of January 8 calls for $0.25. About 50 minutes later they bought another 10,000 puts for $0.19 and sold the same number of calls for $0.28. This is new positioning, as previous open interest at each strike was fewer than 900 contracts.

This combination trade could be an outright bearish play looking for S to call below $7. Alternative, it could be a collar, hedging a long position against a pullback through the end of the year.

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