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


About sellacalloption

Portfolio manager and chief option strategist for Fusion Asset Management. Professional option trader with VTrader Pro, LLC.

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

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