Monthly Archives: September 2013

Nokia sells units to Microsoft

On 09-03-2013 Microsoft MSFT, announced that it is buying the handset units from Nokia, NOK. Nokia stock moved up over 16 standard deviations on the news. The chart below is a daily chart of Nokia, the red bars show the price move in standard deviations. The line on the bottom is the IV/SV ratio, notice how the implied volatility rose dramatically in the days prior to the announcement, a signal that something was happening.

NOK 09-03-2013


Implied Volatility Rise in Oil Options

The chart below shows the US oil fund, USO. It is a daily chart the line on the bottom shows the rise in the implied volatility of options on USO. The situation in Syria has led to talks of an oil spike and the oil options are getting expensive.

USO 08-31-2013