Mad About Options takes a look at the stocks getting coverage from Jim Cramer, Fast Money casts and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.
The Pick Nokia (NOK):
On Dec. 21, a Fast Money cast member said, I think $12.25 is the low and it trades higher from there. It looks like the cast member took a bullish stance on NOK, which traded at $12.39 at the time of this report.
BULLISH Option Trading Idea for NOK:
Short put
Sell February 12 puts for 50 cents each
Net credit of 50 cents
Maximum risk: $11.50 plus commissions
Maximum potential profit: 50 cents minus commissions
Breakeven: The strategy will be profitable if NOK shares are trading higher than $11.50 at February expiration.
BEARISH Option Trading Idea for NOK:
Bear put spread
Buy the February 13/12 bear put spread for 50 cents
Net cost of 50 cents
Maximum risk: 50 cents plus commissions
Maximum potential profit: 50 cents minus commissions
Breakeven: The strategy will be profitable if NOK shares are trading lower than $12.50 at February expiration.
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Duration : 0:2:21