Schaeffer's Option Blog: Traders Favor Calls on Sprint Nextel (S) as It Struggles with Resistance at 5.50

CINCINNATI--(Business Wire)--
Sprint Nextel (NYSE: S) was the focus of some brisk option trading on Monday, as
more than 72,600 contracts changed hands. According to data from
WhatsTrading.com, this volume is more than three times the equity's average
daily trading volume of 19,363 contracts. Furthermore, roughly 77% of the volume
crossed the tape on the call side.

Drilling down into the front three months of options, the June 6 call added more
than 2,400 contracts, pushing its open interest up to nearly 13,000 contracts.
Meanwhile, the July 6 call added more than 18,000 new positions, pushing its
open interest up to 26,198 contracts. At 9:51 a.m. Eastern time, a block of
2,000 contracts changed hands at an ask price of $0.25. At 10:01 a.m., three
large blocks totaling 9,913 contracts traded at an ask price of $0.30 contracts.

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Schaeffer's Investment Research
Jocelynn Drake, 513-589-3800
(jdrake@sir-inc.com)

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