Option Trade 
T-Mobile US Inc (NASDAQ:TMUS) Calls 
Tuesday, 16 February, 2016

**OPTION TRADE: Buy the TMUS May 2016 35.000 call (TMUS160520C00035000) at approximately $3.20. Place a pre-determined sell at $6.50.

Note: No protective stop losses added -- but if you wish to do so make it $1.30.

by Ian Harvey

February 16, 2016

T-Mobile US Inc (NYSE: TMUS), a provider of mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands, will be issuing its Q415 quarterly earnings data on Wednesday, February 17th, before the market opens, Wall Street is anticipating a year-over-year earnings increase.

Analysts expect the company to announce earnings of $0.20 per share and revenue of $8.27 billion for the quarter.

During the same quarter a year ago, the company earned 12 cents a share on revenue of $8.15 billion.

Shares of T-Mobile US Inc opened at 35.11 on Tuesday. T-Mobile US Inc has a 52-week low of $30.73 and a 52-week high of $43.43. The firm has a market cap of $28.65 billion and a P/E ratio of 58.61. The firm’s 50-day moving average is $38.27 and its 200-day moving average is $39.13.

The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth.

T-Mobile US Inc reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year, and it is felt that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, T-Mobile US Inc turned its bottom line around by earning $0.29 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus $0.29).

The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 246.8% when compared to the same quarter one year prior, rising from -$94.00 million to $138.00 million.

Powered by its strong earnings growth of 225.00% and other important driving factors, this stock has surged by 25.85% over the past year, outperforming the rise in the S&P 500 Index during the same period.

T-Mobile US Inc had its price target increased by Goldman Sachs to $47.00 in a research report sent to investors recently.

One analyst has rated the stock with a sell rating, nine have assigned a hold rating and eighteen have issued a buy rating to the company. The company currently has an average rating of Buy and an average price target of $44.78.

Harvey’s Options Volatility Indicator

Therefore, based on the facts above, and Harvey’s Options Volatility Indicator, the following option trade is recommended…..

**OPTION TRADE: Buy the TMUS May 2016 35.000 call (TMUS160520C00035000) at approximately $3.20. Place a pre-determined sell at $6.50.

Note: No protective stop losses added -- but if you wish to do so make it $1.30.

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