Options Bullish on This Glass Firm Ahead of Earnings
Corning is attracting upside option trading for the second time in about a week as it prepares to announce earnings results in a few days.
Our screens lit up last Wednesday with May call buying, but yesterday we saw heavy activity in the June contracts. OptionMonster's tracking systemsdetected 8,122 calls changing hands at the June 23 strike, more than 7,000 of them trading in a strong buying pattern from $0.17 to $0.22 against previous open interest of 2,328 contracts.
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The LCD glass maker finished yesterday up 1.49 percent to $20.40 and ticked up another $0.29 percent in after-hours trading. The stock is up some 40 percent in the last six months but has hit resistance twice below the $21 level.
Shares broke above $20 Monday after receiving an upgrade from RBC Capital Markets. Some traders apparently believe that the stock is ready to test its 52-week high of $20.85 from January.
The next catalyst for Corning will be its earnings report scheduled for next Wednesday, April 28. For the calls purchased yesterday to turn a profit, the stock would need to gain roughly 14 percent by expiration on June 18. Overall calls in the name outnumbered puts by 9.5 to 1 yesterday.
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Najarian owns a long call spread in GLW.