Bear dials up Nokia even as stock pops

optionMONSTER

A huge downside trade targeted Nokia yesterday even as the cell-phone maker's shares jumped.

A trader bought 20,000 July 2.50 puts for the ask price of $0.33 and, less than a minute later, sold 30,000 July 1.50 puts for $0.09, according to optionMONSTER's Depth Charge tracking system. The volume was more than the open interest at each strike, so this was a new ratio spread .

This put spread takes maximum profit if NOK is around $1.50 at the expiration. If it is below that level, the trader will face the obligation to buy the stock. (See our Education section)

NOK was up 5.52 percent to $3.44. The stock is climbing back toward the close of Nov. 23, its highest since the start of May. Shares hit a low of $1.63 in mid-July.

Total option volume in NOK exceeded 94,000 contracts, more than twice its daily average in the last month. Puts outpaced calls by 2 to 1.

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