Nokia Stock Plummets After Mysterious Surge

More than 1.1 million calls have crossed the tape so far

Deputy Editor
Jan 28, 2021 at 12:44 PM
facebook twitter linkedin


Nokia Oyj (NYSE:NOK) is plummeting today, down 28.7% at $4.66 at last check. Today's negative price action comes after yesterday's surge to a nine-year high of $9.79, after which the stock pulled back to close at $6.55. The company noted that it was unaware of any reason for the surge in share price, but it's spectacular volume meant it joined GameStop (GME) and AMC Entertainment (AMC) as a restricted stock on the Robinhood investment app due to "market volatility." 

Options traders are chiming in at an overwhelming rate, with options volume running at seven times what's typically seen at this point. More specifically, NOK has seen more than 1.1 million calls and 150,000 puts cross the tape so far, with the most active option the weekly 1/29 10-strike call. 

Today's options pits echo the sentiment of the past 10 weeks, per Nokia stock's 50-day call/put volume ratio of 35.06 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This reading sits in the 98th percentile of its annual range, revealing long calls being picked up at a much faster-than-usual rate. 

On the analyst front, however, five of the six in coverage carry a lukewarm "hold" rating on NOK. Plus, the 12-month consensus price target of $4.53 is a 3.9% discount to current levels. 

 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners