Telecommunications stock T-Mobile US Inc (NASDAQ:TMUS) was last seen down 1.5% to trade at $207.38, following a downgrade from Oppenheimer to "perform" from "outperform." The firm cited slowing industry subscriber growth, believing the company will have a hard time beating subscriber and free cash flow estimates.
TMUS has had a volatile year on the charts, recently hitting a Nov. 6 one-year low of $199.41 after trading as high as $276.49 in March. The stock's rebound from those lows was met with resistance at the previously supportive $220 level earlier this week. Since the start of the year, the equity is down roughly 5%.
Options traders appear to be buying in on the dip after the stock's early-November lows. TMUS' 10-day call/put volume ratio of 3.94 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than all other readings from the past year. Echoing this bullish outlook is T-Mobile's Schaeffer's put/call open interest ratio (SOIR) of 0.45, which sits in just the lowest percentile of its annual range.
T-Mobile stock has tended to exceed option traders' volatility expectations during the past year, per its Schaeffer's Volatility Scorecard (SVS) which is sitting at a 91 out of 100.
