Unusual Options Activity Fri 6/7/24

 The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility. 

Bullish Call Activity:

• BB June28 3.00 Calls (volume: 2174, open int: 1865, implied vol: ~96%, prev day implied vol: 71%). Co is expected to report earnings early July. Co is down 4% today. 
• CLSK June14 18.50 Calls (volume: 2341, open int: 1495, implied vol: ~96%, prev day implied vol: 82%). Co is expected to report earnings early August. 
• MBLY June21 32.00 Calls (volume: 2929, open int: 648, implied vol: ~65%, prev day implied vol: 57%). Co is expected to report earnings late July. Stock is up 11% in today's session. 

Bearish Put Activity: 

• DOCU June07 49.00 Puts (volume: 2839, open int: 1148, implied vol: ~37%, prev day implied vol: 35%). Co reported earnings and announced a $1 bln increase to share repurchase program yesterday. Stock is down 5% in today's session. 
• TMUS July05 180.00 Puts (volume: 2443, open int: 1034, implied vol: ~19%, prev day implied vol: 18%). Co is expected to report earnings late July. 

Sentiment: The CBOE Put/Call ratio is currently: 0.99, VIX: (12.28, -0.30, -2.38%). June 21 is options expiration -- the last day to trade June equity options

==T-Mobile US (TMUS) reported earnings on Wed 2 Feb 22 (a/h)

 

T-Mobile US beats by $0.20, misses on revs

• Reports Q4 (Dec) earnings of $0.34 per share, $0.20 better than the S&P Capital IQ Consensus of $0.14; revenues rose 2.2% year/year to $20.79 bln vs the $21.05 bln S&P Capital IQ Consensus.
• Adjusted EBITDA was $6.3 billion in Q4 2021 and $26.9 billion in full-year 2021, and Core Adjusted EBITDA increased 3% year-over-year to $5.7 billion in Q4 2021 and increased 16% year-over-year to $23.6 billion in full-year 2021.
• Postpaid net customer additions of 1.8 million in Q4 2021 - 5.5 million in full-year 2021, exceeded guidance.
• Postpaid phone churn was 1.10% in Q4 2021, as the company ramped up its Sprint customer integration, and 0.98% in full-year 2021.
• Prepaid churn was 3.01% in Q4 2021 and 2.83% in full-year 2021.
• FY22 guidance: 
  • Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $25.6 billion and $26.1 billion, up approximately 10% year-over-year at the mid-point.
  • Net cash provided by operating activities is expected to grow more than 10% year-over-year and Free Cash Flow is expected to grow more than 30% year-over-year at mid-point of guidance.
  • Postpaid net customer additions are expected to be between 5.0 million and 5.5 million, expecting to lead the industry for the 8th consecutive year.

Earnings this week : Jan 31 - Feb 4, 2022 (wk 5)

Monday (Jan 31)

• Morning:  AKTS ATKR CTXS OTIS TT
• Afternoon: AGNC ARE AXTA CBT CRUS CACC FN GGG HLIT HTLF HP JJSF KMPR KRC NXPI PCH SANM WWD

Tuesday (Feb 1)

• Morning: ALGM ARCB TECH BR CTLT ENTG EPD AQUA XOM BEN GFF HLNE IMO LII MAN MDC NVR PNR PBI PINC PHM SMG ST SIRI SWK UBS UPS WAT
• Afternoon:  AMD GOOG AMCR DOX APAM ASH CB EA EHC EQR GM GILD HMN IEX LFUS MANH MTCH MRCY MSTR OI PYPL PKI SBUX SMCI TENB UNM

Wednesday (Feb 2)

• Morning:  ABBV ATI ABC AVY BSX EAT BIP CHRW CPRI CRS GIB DHI DT EMR EVR RACE HWM HUM IDXX JCI MMP MPC MPLX NYT NVS ODFL ROP SAIA SBH SLAB SR SPR TMO VNE WNC WM
• Afternoon:  EGHT ADTN AFL ALGN ALGT ALL AVB BDN CCS CHNG CCMP CTSH CLB CTVA DXC ELF ESS FORM FBHS GL THG HI HOLX KLIC LNC MXL MCK FB MET MTG MAA MUSA NTGR OHI OMF QRVO QCOM RYN RRR RRX SITM SKY SPOT TMUS TTEK TBI UGI YELL

Thursday (Feb 3)

• Morning: ABB ABMD WMS AME APTV ARW AZEK BCE BDX BERY BIIB BV CAH CSII CG CHKP CI CMS COP CMI DLX LLY EL FTV GWW HAIN HBI HSY HON HUBB ITW INGR ICE JHG LANC LAZ LITE MMS MPW MRK MTOR MSGS NJR NOK NS PH PENN PBH DGX RL SNDR RDS.A SNA TKR TW VSAT VSTO WD WEC WRK XYL
• Afternoon: ATVI AMZN AINV AVTR BECN BHE BILL BYD CPT CDK CLX COLM CUZ DECK DLB ENVA EXPO F FTNT GPRO HIG LCI LESL LGF.A LPLA MCHP MIME MTX MWA NFG NWSA NLOK NOV OTEX PYCR PCTY PFSI PINS POST POWI PRU RGA SIGI SKX SKYW SWKS SNAP SYNA U VIAV WERN WWE

Friday (Feb 4)  

• Morning:  ADNT APD AON BMY BEP CBOE ROAD ETN REGN SNY SPB TWST

-=Sprint (S) and and T-Mobile US (TMUS) : merger finally gets approval

• The New York Times reported that a judge is expected to rule in favor of its merger with T-Mobile US (TMUS) 
• 80 million subscribers

U.S. District Court Judge Victor Marrero on Feb. 11 cleared the merger. Several states had sued to block the union, saying it would harm wireless competition. The Federal Communications Commission and the Department of Justice approved the deal earlier with conditions.

T-Mobile, controlled by Deutsche Telekom (DTEGY), said it expects the merger to close as early as April 1.

When combined, T-Mobile/Sprint would own more radio spectrum than AT&T or Verizon, an important edge as 5G wireless services are rolled out.

"T-Mobile will finally have the deep block of 2.5 GHz mid-band spectrum they always coveted," MoffettNathanson analyst Craig Moffett said in a blog. "That will allow the new T-Mobile to mount the most credible threat either Verizon's or AT&T's network supremacy has ever faced."

T-Mobile Stock Fundamental Analysis

T-Mobile continues to lead the wireless services market in subscriber and revenue growth. Growth has cooled, though, since 2017 for all U.S. wireless companies with the market saturated.

Most consumers have unlimited data plans. They upgrade smartphones at a slower rate. Plus, data-gobbling mobile video hasn't panned out as a big moneymaker.

U.S. regulators blocked AT&T's proposed acquisition of T-Mobile in 2011. A rejuvenated T-Mobile in late 2013 unleashed its "Uncarrier"-branded marketing campaign along with aggressive price discounts. T-Mobile also upgraded its wireless network, closing a performance gap with Verizon.

The strategy paid off as T-Mobile grabbed the lion's share of coveted "postpaid" subscribers that spend more on wireless data services.

Competition appears to be heating up in early 2020, with Verizon turning more aggressive with promotions. Analysts expect Apple's (AAPL) rollout of a 5G iPhone to spark increased marketing.

T-Mobile Outlook With Sprint Merger Closing

When combined, the new T-Mobile/Sprint will have prime radio spectrum to launch 5G wireless services. T-Mobile has touted plans to provide in-home fixed wireless broadband services by 2024.

-=T-Mobile’s (TMUS) $26.5 billion takeover of rival Sprint (S) approved by U.S. regulators

• Regulators approved the deal despite fears of higher prices and job cuts

WASHINGTON (AP) — U.S. regulators have approved T-Mobile’s $26.5 billion takeover of rival Sprint, despite fears of higher prices and job cuts, in a deal that would leave just three major cellphone companies in the country.

Friday’s approval from the Justice Department and five state attorneys general comes after Sprint and T-Mobile agreed to conditions that would set up satellite-TV provider Dish as a smaller rival to Verizon, AT&T T, +0.87%   and the combined T-Mobile-Sprint company. The Justice Department’s antitrust chief, Makan Delrahim, said the conditions set up Dish “as a disruptive force in wireless.”

But attorneys general from other states and public-interest advocates say that Dish is hardly a replacement for Sprint as a stand-alone company and that the conditions fail to address the competitive harm the deal causes.

“By signing off on this merger, the Justice Department has done nothing to remedy the short- and long-term harms the loss of an independent Sprint will create for U.S. wireless users,” Free Press Research Director S. Derek Turner said.

A federal judge still must sign off on the approval, as it includes conditions for the new company. The Federal Communications Commission is also expected to give the takeover its blessing.

Dish is paying $5 billion for Sprint’s prepaid cellphone brands including Boost and Virgin Mobile — some 9 million customers — and some spectrum, or airwaves for wireless service, from the two companies. Dish will also be able to rent T-Mobile’s network for seven years while it builds its own.

Dish on Friday promised the FCC that it would build a nationwide network using next-generation “5G” technology by June 2023. But Dish is promising speeds that are only slightly higher than what’s typical today, even though 5G promises the potential for blazing speeds.

The Trump administration has not been consistent in its approach to media and telecom mergers. While the government went to court to block AT&T’s acquisition of Time Warner and then lost, the Justice Department allowed Disney to buy much of 21st Century Fox, a direct competitor, with only minor asset sales to get the deal done. Mergers between direct competitors have historically had a higher bar to clear at the Justice Department.

=Sprint (S) and T-Mobile (TMUS) agree to $26 billion merger

• A report commissioned by CTIA, a trade association for the wireless communications industry, states that South Korea and China maintain a lead over the United States when it comes to readiness for rolling out 5G. The T-Mobile and Sprint merger may or may not expedite the US’s position.

Sprint (S) & T-Mobile (TMUS) reach agreement to merge in all-stock transaction 

The co's announced they have entered into a definitive agreement to merge in an all-stock transaction at a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share or the equivalent of 9.75 Sprint shares for each T-Mobile US share.

• Based on closing share prices on April 27, this represents a total implied enterprise value of approximately $59 billion for Sprint and approximately $146 billion for the combined company. The new company will have a strong closing balance sheet and a fully funded business plan with a strong foundation of secured investment grade debt at close.
• The combined company will be named T-Mobile, and it will be a force for positive change in the U.S. wireless, video, and broadband industries. The combination of spectrum holdings, resulting network scale, and expected run rate cost synergies of $6+ billion, representing a net present value (NPV) of $43+ billion will supercharge T-Mobile's Un-carrier strategy to disrupt the marketplace and lay the foundation for U.S. companies and innovators to lead in the 5G era.
• The Boards of Directors of T-Mobile and Sprint have approved the transaction. Deutsche Telekom (DTEGY) and SoftBank Group (SFTBY) are expected to hold approximately 42% and 27% of diluted economic ownership of the combined company, respectively, with the remaining approximately 31% held by the public. The Board will consist of 14 directors, 9 nominated by Deutsche Telekom and 4 nominated by SoftBank Group, including Masayoshi Son, Chairman and CEO of SoftBank Group, and Marcelo Claure, CEO of Sprint. John Legere, CEO of the New T-Mobile, will also serve as a director.

The transaction is expected to close no later than the first half of 2019.

=Sprint (S) and T-Mobile US (TMUS) : merger talks end

• Oct. 30:  The Nikkei Asian Review reported that Sprint's (S) parent company, SoftBank, plans to end merger talks between Sprint and T-Mobile US (TMUS). The two wireless names moved sharply lower following the report, but pared some of their losses after CNBC's David Faber said parts of the report were untrue.
• Nov. 4:  Sprint announced that discussions regarding a potential merger with T-Mobile (TMUS) have ended without an agreement being reached.

=Sprint (S), T-Mobile (TMUS) : merger talks?

•  Potential merger os Sprint (S) with T-Mobile (TMUS) as CNBC reports the co's are in talks regarding a stock-for-stock merger.

=T-Mobile US (TMUS) reported earnings on Mon 24 Oct 2016 (b/o)

T-Mobile US beats by $0.05, misses on revs; raises FY16 EBITDA, postpaid net customer adds guidance:

• Reports Q3 (Sep) earnings of $0.27 per share, excluding $0.15 in spectrum gains, $0.05 better than the Capital IQ Consensus of $0.22; revenues rose 17.8% year/year to $9.25 bln vs the $9.45 bln Capital IQ Consensus. Adjusted EBITDA was $2.630 billion in the third quarter of 2016, up 6.7% from $2.464 billion in the second quarter of 2016 and up 37.8% from $1.908 billion in the third quarter of 2015.
• 2.0 million total net adds -- 14th consecutive quarter of over 1 million; 851,000 branded postpaid phone net adds -- industry leader in net adds for the 11th consecutive quarter
• Adjusted EBITDA in the third quarter of 2016 included a pre-tax gain of $199 million from spectrum license transactions.
• Branded postpaid net customer additions for the full-year 2016 are now expected to be between 3.7 and 3.9 million, an increase from the previous guidance range of 3.4 to 3.8 million.
• For the full-year 2016, T-Mobile now expects Adjusted EBITDA to be in the range of $10.2 to $10.4 billion, raising and narrowing the previous guidance range of $9.8 to $10.1 billion. This guidance includes the aggregate net impact from leasing and Data Stash, now expected to be ~$1.0 to $1.1 billion, and $0.8 billion related to spectrum gains recognized in the first nine months of 2016.
• Cash capital expenditures for the full-year 2016 are expected to be in the range of $4.5 to $4.7 billion, narrowing the previous guidance range of $4.5 to $4.8 billion.