Nokia Corp. (NYSE: NOK) opened at $22.92. So far today the stock has hit a low of $22.88 and a high of $23.01. As of 10:40 a.m., NOK is trading at $22.77, up $0.35 (1.6%).After hitting a one-year high of $23.47 in April, the stock has been testing resistance at $23 over the past couple of months, looking to break that high. Nokia introduced two new mobile phones today, designed with young consumers in mind. The technical indicators for NOK have been bullish and slightly deteriorating, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.
For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $20 range. NOK hasn't been below $20 since January and has shown support around $21.50 recently. This trade could be risky if the company's earnings (due out 4/19) disappoint, but even if the stock slips a little, it could find support from its 200 day moving average, which is just above $20.
Brent Archer is an options analyst and writer at Investors Observer. (Free Subscription)
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.
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