T-Mobile US, Inc (TMUS) is a wireless network operator in the United States. The company’s stock is currently trading around $26.10 in a 52 week range of $16.01-$29.50. The stock has been performing very well this year adding over 59% to share prices year to date. Bullish bets in the options market this morning are signaling that traders expect this trend to continue through the end of the year. Early in today’s trading session a trader bought 10,844 TMUS Jan 28 calls for $0.71. This is a very bullish trade that exposes this trader to $769,000 worth of risk. This trade comes at a time when we see TMUS at an important level technically. The stock has sold off to the top of the Ichimoku Cloud, an area that should serve as support, and seems to be finding buyers. We believe that this trade represents a trader calling a near term bottom in TMUS and should provide us with an opportunity for a swing stock trade. With stock right above the cloud we can take this trade with a relatively tight stop just below the cloud.
Trade: Buying TMUS stock at $26.10 with a stop at $24.80
Risk: $1.30 per share
Target #1: $26.75
Target #2: $27.40
Target #3: $28.70
