Call Buying Rampant as Nokia Corporation (NOK) Pops

Nokia Corporation (ADR) (NOK) traders see upside ahead

Apr 10, 2015 at 2:02 PM
facebook X logo linkedin


Nokia Corporation (ADR) (NYSE:NOK) is rallying today, up 4% to hover near $8.04 amid speculation over a possible M&A deal for its maps business. As a result, NOK options bulls have been active, with some traders betting on short-term upside for the equity.

Drilling down, NOK calls are moving at 23 times the average intraday rate, and are outpacing puts by a roughly 14-to-1 margin. The day's most active option by far is the April 8 call, where apparent buy-to-open activity is taking place. By purchasing this call at a volume-weighted average price (VWAP) of $0.14, the buyers will profit if the shares of NOK muscle their way above $8.14 (strike plus VWAP) by the close on Friday, April 17, when the contract expires.

Today's penchant for calls mirrors recent trends in the options pits. Over the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 19.46 NOK calls have been bought to open for every put, which is a higher ratio than 77% of all equivalent readings taken over the past year. Traders are paying relatively modest prices for their short-term bets on NOK, as its Schaeffer's Volatility Index (SVI) of 25% ranks in the 10th percentile of its annual range.

Elsewhere, a sizeable portion of the brokerage bunch is skeptical of NOK. Of the 12 analysts covering Nokia Corporation (ADR) (NYSE:NOK), seven rate it a "hold" or "strong sell." However, with the stock pinned in a sideways channel between $7 and $8 for the better part of the last 18 months, it's no surprise that skepticism reigns among analysts.

Daily Chart of NOK Since October 2014
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI