Owens Corning seen holding firm
Chris McKhann | [email protected]
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.