5MRD

Corning Eyes $100 Strike as Calls Heat Up

GLW options surge on volatility signals

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Subscribers to Schaeffer's Weekend Trader options recommendation service received this GLW commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
 
Corning Inc. (NYSE:GLW) stock recently broke back above the 50-day moving average and conquered the $84 level, which acted as resistance in November. The equity also retook the large, front-month 80-strike call level, and now could run toward the final call-heavy-100-strike level.

 

 
An unwinding of pessimism could keep tailwinds blowing for GLW. The equity’s 10-day put/call volume ratio of 2.81 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is higher than 99% of readings from the past year. Echoing this, its Schaeffer's put/call open interest ratio (SOIR) sits at the top of its annual range.

It’s also worth noting that the security’s Schaeffer's Volatility Scorecard (SVS) comes in at an elevated 82 out of a possible 100. This indicates Corning stock has consistently realized higher volatility than its options have priced in.

Our recommended call has a leverage ratio of 6.6 and will double on a 16.5% rise in the underlying equity.
 

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