Corning Incorporated (GLW) Traders Eye Multi-Month Highs

Corning Incorporated is up today on a pair of fundamental developments

Digital Content Group

Dec 3, 2014 at 2:02 PM

Corning Incorporated (NYSE:GLW) has rallied 2.7% to trade at $21.58, after increasing its dividend and introducing a $1.5 billion share repurchase program. These developments are bringing call traders to the table, as the contracts are running at double the usual intraday pace. In fact, each of the 10 most active strikes is a call.

In the top position is the weekly 12/5 21.50-strike call. Four-fifths of the volume here has transpired at the ask price, and volume outstrips open interest, making it safe to assume new bullish bets are being initiated. While these GLW calls are already in the money, the buyers need the stock to finish above breakeven at $21.66 (strike plus the volume-weighted average price of $0.16) at Friday's close, when the weekly series expires.

Looking at the charts, Corning Incorporated (NYSE:GLW) -- despite surging nearly 21% this year -- hasn't ended a week atop $21.50 since late July. As such, delta on the in-the-money call is still about the flip of a coin, or 0.51.

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