Must-See Buy Signal for Corning Stock Options Traders

Short-term GLW options are attractively priced right now

by Patrick Martin

Published on Jan 3, 2018 at 3:07 PM

Corning Incorporated (NYSE:GLW) has started 2018 off hot, up almost 4% already, and touching a nearly 17-year high of $33.10 earlier today. It appears this rally might have legs, too, with the iPhone glass manufacturer sending up a buy signal to short-term options traders right now.

At last check, Corning stock was trading near its session highs -- up 1.9% at $33.22. The equity has tacked on an impressive 36% over the last 52 weeks, with a late-October bull gap helping secure a newfound foothold atop the $31-$32 region.

The stock could be ready to hit even higher highs, if past is precedent. The equity's Schaeffer's Volatility Index (SVI) of 15% is higher than just 3% of all other readings from the past year, pointing to relatively attractive short-term premiums amid muted volatility expectations.

In the five other times Corning stock has been trading near new highs while its SVI has been ranked in the bottom 10th percentile of its annual range, looking back to 2008, the shares averaged a one-month gain of 4.03%, according to data from Schaeffer's Senior Quantitative Analyst Rocky White. Plus, the stock was positive 100% of the time.

The stock could also get a boost should analysts start to upwardly revise their outlooks. Of the nine brokerages covering Corning shares, eight rate them a "hold" or "strong sell." Furthermore, the equity's average 12-month price target of $31.13 sits below the stock's current perch.

In the options pits, GLW call volume has picked up today, with 18,000 calls traded -- four times the average intraday amount and pacing in the 97th percentile of its annual range. The February 33 call is the most popular, where there appears to be a mixture of buy- and sell-to-open activity. Next up is the January 2018 32-strike call, where options bulls appear to be betting on a repeat of history.


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