Bloomberg reported that Sprint (NYSE:S) and Dish Network (NASDAQ:DISH) are beginning talks to partner up against telecom market leaders Verizon (NYSE:VZ) and AT&T (NYSE:T). This partnership would allow DISH to enter the telephone space without building their own infrastructure, and it would allow Sprint access to the Dish Network’s 14 million satellite-TV customers. All in all, it’s the kind of news that makes things look bullish all around.
Normally I don’t trade on the news like this. But news does affect investor sentiment, and that moves the charts—and the data that my Power Options system reads. This week it’s showing some attractive options on DISH.
Recommendation: Buy DISH Mar. $41 Call options at $1.40 or lower, when the stock price is at $37.30. After entry, take profits if the stock price hits $40.70 or the option price reaches $2.90. Exit if the stock price closes below $35.60 or the option price falls to 90 cents.
Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.