Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)  has had a big run recently, much to the chagrin of some Tiger Cubs (see all funds shorting Nokia here). What is an investor to do? Cantor Fitzgerald Europe is out with a new report, which suggests buying some options. The analysts note that an investor can 1) Pay Euro 3.08 for the stock OR >2) Pay EUR 0.40 for the Sep 2013 3.20 Call and Sell the Sep 2013 4.40 Call at EUR 0.13 for a net cost of EUR 0.27 If the stock reaches the upper strike price then the return will be EUR 0.93 for a EUR 0.27 outlay (3.4x).

We summarize the background and potential catalysts for the idea below:

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) has rallied ~50% in the last 3 months and almost 100% from its one year low but lost almost 20% since it reported its FY results on 24th Jan 2013 which included a return to profit but a dividend suspension.

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s share of the handset market was 19% in 2012, down from 32% in 2010 as they’ve lost out to the likes of Apple (N/C), Blackberry (N/C), LG (N/C), Sony (N/C) and Motorola (N/C).

The Lumia range which runs on a Windows platform has generally been well received.

Possible launch of a Microsoft compatible tablet at the Mobile World Congress (23rd- 28th Feb).

In talks to end its Nokia Siemens Networks (“NSN”) joint venture which could include a buyout of Siemens (N/C) with a new partner such as Alcatel-Lucent (N/C) or an IPO.

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s NAVTEQ recently won the contract to supply navigation mapping systems to Toyota (N/C); last year Ford (N/C) chose Nokia (N/C) over Google (BUY – TP USD $900).

Cantor believes that income fund selling has abated.