After hitting a one-year low of $18.87 in January, the stock hit a one-year high of $42.22 this month. NOK opened this morning at $39.02. So far today, the stock has hit a low of $39.02 and a high of $39.56. As of 11:00, NOK is trading at $39.55, up $1.37 (3.6%). The chart for NOK looks bullish but deteriorating, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $35 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in just 4 weeks as long as NOK is above $35 at December expiration. Nokia would have to fall by more than 11% before we would start to lose money.

Continue reading Nokia (NOK) higher on deal with Russian telecom carrier

Nokia (NOK) higher on deal with Russian telecom carrier originally appeared on BloggingStocks on Wed, 28 Nov 2007 13:00:00 EST. Please see our terms for use of feeds.