Nokia Sees Unusually High Options Volume (NOK)
October 4th, 2013 - 0 comments - Filed Under - by Lisa McLeod
Shares of Nokia (NYSE:NOK) was the recipient of unusually large options trading activity on Friday. Traders acquired 20,229 call options on the company, American Banking and Market News reports. This represents an increase of approximately 271% compared to the typical daily volume of 5,452 call options.
NOK has been the subject of a number of recent research reports. Analysts at Bank of America Corp. reiterated a “positive” rating on shares of Nokia (NYSE:NOK) in a research note to investors on Tuesday. Separately, analysts at HSBC upgraded shares of Nokia (NYSE:NOK) from an “underweight” rating to a “neutral” rating in a research note to investors on Monday, September 23rd. Finally, analysts at TheStreet upgraded shares of Nokia (NYSE:NOK) to a “hold” rating in a research note to investors on Friday, September 20th. Four equities research analysts have rated the stock with a sell rating, twenty-one have assigned a hold rating and thirteen have assigned a buy rating to the company. Nokia has an average rating of “Hold” and an average target price of $4.55.
what the heck are you talking about? did you just copy paste some spammers autogenerated text?
I watch the options volume daily and yesterdays volume was LOW for the last month.
open interest is like 1.5 MILLION contracts so 20,000 is nothing. Nokia has been trading 50,00 to 80,000 scontracts a day for most of the last month... in the top 20 of all company's option trading volume.
are you talking about the trade in the Nov 7-8's for 6,000 contracts each?
C'mon chief there is nothing 100% guaranteed in the stock market. Of course it could mean nothing. Anytime two parties talk there is nothing guaranteed of any results even if they are talking. Most of the highly unusual call volumes DO end up in some positive event. Professional traders use it. Everyone here knows there is a 50/50 chance at all times in a market of anything.
In order to know if this meant anything, you would have to look at how many times did a similar event like this occur and the end result was good news on Monday. Looking at what happened the Friday before the D&S sale does not prove anything. It is similar to 9/11 conspiracy theorists reporting of an increase in put options of airlines just prior to 9.11. In that case (I hate to use the term), the logic was flawed.
Anyone care to speculate what the near-future catalyst is (if there is one). India deal wouldn't move this thing 271% IMO. Another bidder? Maybe. Sell-off of a division. Maybe.
But I think what most likely moved this thing up has to be related to Samsung. We already got a source today mentioning talks between the two (Nokia and Samsung) in regards to patents. I'm thinking Samsung will get a license for Nokia's patents. If you want to take it a step further and talk crazy, maybe Samsung bought patents from Nokia related to devices. But this would mean that Microsoft's 2.5 billion would go to Samsung as well as other licenses that Apple has.
Could also be a positive earnings surprise. If significant, then NOK will have to pre-announce. Maybe another bidder is coming forward. Doubtful, but with this talk of microsoft talking to HTC, then perhaps they are covering their bases and putting together a plan b just in case. Not sure if NOK would want to sell all of their patent portfolio. I guess we'll see what happens, if anything at all.
All roads lead back to India to leaked information. Coincidence that India authorities Froze Nokia's Bank Assets & Factory (THE WEEK BEFORE THE MICROSOFT DEAL). Too big of a coincidence just like, the ex Nokian Exec. who suddenly wanted to get back to India because the Turmeric tasted good enough back at India to leave a 6 figure job to return home to nothing. Do some of DC's finest FBI agents get a free vacation to India next week? How the hell can it be a coincidence that they freeze the assets before the big Microsoft deal? Those options today are going to make the radar go off.
For the guy that said something about "only" on the options. Any time there is 250 times normal that is a good sign anyway you look at it. It sure isn't a bad thing.
Sounds to me like someone in Nokia has a friend in India (not saying it is ex Nokia guy and that guy worked a deal with India officials for cut. Fiction characters only of course. If not fiction, The India Officials are pretty lucky to know a few days (Timing) before Nokia was suddenly going to come into billions of dollars.