Bulls bet Corning will dash higher
Traders are looking for Corning to keep running higher in the near term.
optionMONSTER's Heat Seeker monitoring program yesterday detected the purchase of 6,000 Weekly 24 calls expiring next Friday, Feb. 6, for $0.21. An equal number of the 25s expiring the same day were sold for $0.05, but volume was below open interest in those contracts.
There are two possible explanations for the activity. One is that the investor previously owned the 25s and rolled the long calls to the lower strike after GLW pulled back. The second possibility is that the trade is a new vertical spread with the potential to earn 525 percent from a move to $25 by expiration. Either way, the trader paid $0.16 and is bullish on the name. (See our Education section)
GLW fell 1.78 percent to $23.79 yesterday. The glass manufacturer shot to a six-year high after beating earnings expectations on Tuesday and has appreciated 35 percent since mid-October. Management has cited strong demand for the company's Gorilla Glass, fiber optics, and environmental products.
Total option volume in the name was triple the daily average yesterday, according to the Heat Seeker. Overall calls outnumbered puts by more than 5 to 1.
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