Traders are looking for Nokia to rally by the end of the year.
optionMONSTER's Heat Seeker monitoring system detected the purchase of about 8,700 Weekly 7 calls expiring on Dec. 31 for $0.18 to $0.20 on Friday. Volume was more than 530 times open interest in the strike, which indicates that new money was put to work.
Long calls fix the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Coaching section.
NOK fell 1.71 percent to $6.90 on Friday but is up 8 percent in the last three months. The network-infrastructure company's next quarterly report is scheduled for pre-market hours on Jan. 28.
Overall option volume was 3 times greater than average. Calls outnumbered puts by a bullish 6-to-1 ratio.
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