RSX, NOK Options – Unusual Trading Activity – March 3, 2014
This week we’re taking a look at unusual options trading activity in Market Vectors Russia ETF (RSX) and Nokia (NOK).
As many of you know, unusual options volume can be a valuable indicator as to what traders are thinking, and more importantly, where these stocks are heading in the short-term.
This is something professional options traders pay a lot of attention to, and for good reason… Unusual options activity can “tip off” big moves in a stock, either up or down.
So let’s take a look at some ‘interesting’ activity that caught our eye this week:
Market Vectors Russia ETF (RSX)
At least one strategist believes the selloff in Russian stocks is overdone.
RSX, a popular Russian stocks ETF, is currently trading for $22.36 per share. The share price is currently 4% below the previous 52-week low of $23.32 and is 24% below the 52-week high of $29.47.
With the Russia/Ukraine crisis in full swing, RSX has dropped in recent days. However, over 89,000 RSX March 21 puts have been sold today. Large blocks have made up much of the volume, with an average price of $0.40.
The strategy will pay off if RSX remains above $20.60 by March expiration. Essentially, selling puts here suggests the selloff in Russian equities is going to slow or stop in the very near future.
Nokia (NOK)
Recent call buying in Nokia implies the stock is going to regain lost ground.
NOK is currently trading for $7.50. The shares are up 148% from the 52-week low of $3.02 and are just 9% below the 52-week high of $8.20.
Last Friday, roughly 17,000 May 8 calls were bought around $0.50. Previous open interest was at just over 3,000, so this must be opening volume.
NOK shares plunged after releasing poor earnings in January. However, the stock has regained some of the ground already. This purchase of calls at the $8 strike suggests the climb is going to continue all the way back to the 52-week high or higher.
More Options Ideas…
That wraps up this week’s unusual options trading and volume…
Keep in mind, there’s a lot more unusual options activity going on than what we discuss here.
We just try to bring you what we feel are the most significant ones– and the ones you might actually be able to make some money on!
So keep an eye on your email inbox… we have a lot more options trading ideas coming your way!
Yours in Profit,
Gordon Lewis
Category: Unusual Options Trading Activity
