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December 18, 2012  Tue 9:23 AM CT

NOK: SEE CHART GET CHAIN FIND STRATEGIES
Nokia shares are surging this morning, but a huge put spread dominates option activity in the cell-phone maker.

More than 95,000 NOK options have already changed hands this morning. A trader sold one block of 19,383 January 4 puts for $0.25 against open interest of more than 89,000 while buying the same number of January $4.50 puts for the ask price of $0.58 in volume that was far above open interest, according to optionMONSTER's Depth Charge system.

This could be a new put vertical spread, with the trader spending $0.28 with the possibility of making $0.22, but it is more likely a roll higher. In the latter case, the trader would be selling to close the $4 puts and buying to open the higher-strike contracts as the stock rises. (See our Education section)

NOK is up 6 percent to trade at $4.20. It was at support at $2.60 a month ago and today is trading at its highest level since April 11, when shares gapped down from above $5.
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The Strike-Based Greeks

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