Nokia market share expectations rise, stock follows

Posted May 14th 2007 12:37PM by Brent Archer
Filed under: Major Movement, Forecasts, Good news, Industry, Nokia Corp. (NOK), Options, Technical Analysis

Nokia Corp. (NYSE: NOK) opened at $26.22. So far today the stock has hit a low of $25.87 and a high of $26.22. As of 12:35, NOK is trading at $26.05, up $0.98 (3.9%).

The stock has climbed sharply over the past two months, hitting a new one year high today after the company lifted its Q2 market share forecast this morning, saying they expect to have more than 36% of the global cell phone market. Emerging demand in Asia is really boosting the company's sales. Recent technical indicators for NOK have been bullish and steady, 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 an October bull-put credit spread below the $22.50 range. NOK hasn't been below $22.50 since March and has shown support around $23.30 recently. This trade could be risky if NOK stock consolidates after today's good news, but even if that happens, this position could be protected by the stock's 50 day moving average, which is at $23.50 and rising.

Brent Archer is an options analyst and writer at Investors Observer. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You When To Dump A Stock. 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. At publication time, Brent neither owns nor controls a position in NOK.

Tags: NOK