Trader Expects More Downside in Nokia Corporation (NOK)

Nokia Corporation (NOK) is a company based in Finland who manufactures mobile devices such as smartphones and lower priced entry level phones. The company’s stock is currently trading around $7.14 in a 52 week range of $3.02-$8.20. The stock has been massively underperforming the market this year with shares falling just under 12% year to date. Options traders are looking for further downside in NOK as we have seen some very bearish orders hitting the tape during today’s trading session. Earlier this morning a trader bought 19,847 NOK Jul 6 puts for $0.28. This is a very large block and also represents volume over 2.2 times the average daily option volume in NOK. With technical weakness in the stock we believe that order flow this unusual provides a signal for a great short opportunity in NOK.

My Trade: Buying the NOK Jul 6 Puts for $0.30
Risk: $30 per 1 lot
Reward: $570 per 1 lot (if stock goes to 0)
Breakeven: $5.70.