It’s been an interesting day so far, this Tuesday August 5th, 2014 in the unusual call buying. We just saw another very interesting call buy, this time in Nokia Corporation (NOK).
One trader is confident in the future prospects of Nokia Corporation (NOK), as they just bought 5,800 October $8.00 calls in NOK, paying 41 cents for the options. It’s an interesting trade and unusual trade given the large number of calls, and also given the weakness in the stock and the market as a whole. The total transaction value is about $238,000. A nice sized “bet”.
Nokia Corporation (NOK) is currently trading at $7.93 during lunch hour, up 8 cents on the day, on much higher than average volume of 22 million shares. It is actually coming off it’s morning high of $8.02. NOK has a trading range over the past year of a 52 week low of $3.87 and a 52 week high of $8.35. This trader clearly thinks it’s Nokia’s time to break out of that 52 week high. And he expects it to happen fairly soon with an October expiration.
Nokia Corporation (NOK) doesn’t announce quarterly earnings until October 23 but we suspect that’s not the reason for this big call buy. Clearly there is some other good news coming soon. With Nokia Corporation (NOK) it could be one of many things, such as some announcement of sales numbers for their latest phones, some sort of buyout, or partnership with Microsoft, or just your run of the mill analyst upgrade / price target raise.
A total of 50 analysts cover the stock with an average rating of HOLD, and an average price target of just $6.29. It could very well be this buyer is in the know about an impending upgrade and or price target raise. A major price target raise would certainly net this buyer a nice profit.
Clearly, with larger than normal volume, and this big call buy, something is up with Nokia Corporation (NOK), we’ll just have to wait a week or two to find out what.
Of course, even with the best insider knowledge, you can lose your shirt if the market takes the big toilet plunge off of world unrest, weak economic numbers or any one of many other fickle reasons.