Why trader is selling puts in Corning
Chris McKhann | firstname.lastname@example.org
GLW is off 2.71 percent to $12.90 in afternoon trading. The company, which provides glass used for screens in Apple's iPod and other products, has given up the gains of the last couple of weeks after failing to hold above resistance at $13.30. Shares have been range-bound between $12.20 and $14.50 for all of 2012.
optionMONSTER's systems detected that a block of 5,000 February 14 puts changed hands for $2.09 against no open interest. These puts are in the money but traded at the bid price, suggesting that they were sold.
The put selling could be a bet that GLW are poised for gains. The trader is also clearly willing to buy the stock if it remains below the $14 strike at an effective price of $11.91, including the credit from selling the puts. (See our Education section)