Trade bets Nokia will hold recent gains
Nokia has been rebounding in the last month, and one trader apparently believes that the stock will hold its recent gains.
A trader bought 12,000 January 3.50 puts for the ask price of $0.08 against open interest of more than 43,000 contracts, according to optionMONSTER systems. At the same time, he or she sold the same number of the February 3.50 puts for the bid price of $0.18 in volume that dwarfed the open interest of just 211 at that strike.
The timing and trade information indicate that this is a roll of short-put position . This would mean that the trader is buying the January puts to close that position and opening the short puts in February as a wager that NOK remains above the $3.50 strike price. (See our Education section)
NOK is down 1.25 percent to $3.95. The cell-phone maker was down at a low of $1.63 in July but spent most of last week above $4, its highest levels since gapping lower in mid-April.
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