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

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About sellacalloption

Author, Radio Show Host and Portfolio manager and chief option strategist for IWC Asset Management.

Posted on September 3, 2013, in Volatilty Forecasting and Trading and tagged . Bookmark the permalink. Leave a comment.

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