Nokia (NOK): Some 20,000 January 4.50 calls were bought for $0.38 as investors position for continued upside in the mobile stock. NOK rose 1.21 percent to $4.19.
Personally, I'm not a fan of using options.
Holding shares, even in margin, allows you to control shares and in a small degree reduce float and volatility. You are helping your own position every time you buy. Holding options means you're waiting for someone else to buy and help you out.
And as much as I am a believer of Nokia, I still do not like putting a expiration limit an investment I own. I will continue to accumulate actual shares monthly as a strategy.
Could be a lot of things going with that trade. dont' forget that every trade has at least two sides. Perhaps somebody was sitting on a nice profit on NOK and just sold a covered call.
Don't forget that you can sell option as well as buy them. Understanding and using options should be part of any active traders toolbox. I am not talking about buying calls and hoping the stock goes up.
yup, saw that :)...hard to ever tell from options from though...but it's a good clue. They are betting hits a minimum of $4.88, but I guess they can sell any time in between if premium goes up...
Sentiment: Strong Buy