OptionsHouse

Options Trading News

April 22, 2014  Tue 11:29 AM CT

OC: SEE CHART GET CHAIN FIND STRATEGIES
A single trade dominates today's option volume in Owens Corning, which reports earnings tomorrow morning.

optionMONSTER systems identified the sale of 5,000 August 42 puts for the bid price of $2 on a wide bid/ask spread. The strike's previous open interest was a mere 3 contracts, so this is a new position.  

The put seller is looking for OC to hold above $42 through expiration in mid-August, at which time the $2 credit would be kept as profit. But if the stock falls below the strike price, the trader would face the obligation to buy shares at that level. (See our Education section)

OC is up 2.36 percent to $43.86 in midday trading. The glass manufacturer hit an all-time high of $46.64 at the start of March and bounced off support at $40 last week.

The company is scheduled to announce quarterly results tomorrow morning before the market opens.

Total option volume in the name tops 5,600 so far today, compared to a full-session average of 325 in the last month.
Share this article with your friends


Related Stories

OC

Bulls sticking with Owens Corning

May 27, 2015

The insulation maker ripped to a 52-week high on April 22 after earnings beat estimates, but it reversed and slid to the bottom of its range before bouncing two weeks ago.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Long synthetic call

Long and short Synthetic stock are two of the six basic synthetic positions that exist. Number three on our list is the Synthetic Long Call...

View more education articles »