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Option Brief: Nokia Corporation (ADR) (NYSE:NOK) is once again seeing a rush of put activity in its options pits, with the contracts trading at more than 13 times the intraday average. The majority of the volume has centered on one strike in particular, as speculators forecast a longer-term slide for the telecom concern -- or perhaps guard their portfolios against one.
The most sought-after strike thus far is NOK's July 6 put, where 21,789 contracts -- including a sweep of 19,847 – have traded. Nearly all of these contracts have crossed on the ask side, implied volatility has shot up 4 percentage points, and volume easily outstrips open interest, collectively pointing to buy-to-open activity. Delta for this put is docked at negative 0.23, meaning for each dollar NOK loses over the next four months, this put will gain $0.23. Conversely, for each dollar NOK adds, this put will lose $0.23.
On the charts, Nokia has put in a strong performance over the past 52 weeks, and has more than doubled in value. More recently, though, the equity has been consolidating a portion of these gains, and in 2014, has shed 11.6% to hover near $7.17. In light of the stock's longer-term technical tenacity, a portion of today's buy-to-open activity at the deep out-of-the-money July 6 put could be at the hands of shareholders protecting paper profits against any additional downside.
Off the charts, Nokia Corporation (ADR) (NYSE:NOK) over the weekend said the sale of its mobile-phone division to Microsoft Corporation (NASDAQ:MSFT) has been delayed by anti-trust regulators in Asia. The deal -- initially expected to be completed at the end of this month -- has been postponed until April.