What's behind huge Corning call sale
Chris McKhann | [email protected]
More than 70,000 GLW options have traded already this morning, compared to the daily average of 5,600. The volume was dominated by one huge call print.
optionMONSTER systems show that a trader sold 62,148 April 14 calls for $0.49, which was below the listed bid price at the time. The volume was more than 10 times the strike's open interest before the session began, clearly indicating that this is a new position.
The options weren't tied to any underlying shares identified by our systems today, so this could be a naked call sale with an initial bearish bias. But given how close the strike is to the share price, the trader is more likely selling the contracts against an existing stock holding in a covered call position. (See our Education section)
GLW is up 4.6 percent to 12.73 after beating earnings estimates and issuing better-than-expected outlook. This is its highest level since mid-October, but the $14 level has been solid resistance since the 52-week highs of a year ago.