Corning Inc. (GLW) Stock Option Volume Soars
Options volume in materials maker Corning (NYSE: GLW - News) is resoundingly higher this morning, on news that it is closing in on a breakthrough development in fiber-optic nanotechnology for mobile communications provider Verizon (NYSE: VZ - News). Corning’s innovation allows cabled fibers to be bent around very tight corners without incurring signal loss. According to a Corning press release, these bendable fibers will allow carriers to offer high-speed Internet, voice telecommunications and HDTV services to customers in apartments and condominiums, where high-speed services of this nature have traditionally been spotty and inefficient. Corning shares are up about half a percentage point in early trading, at $26.67, well within a dollar of its 52-week high.
Options traders have rewarded the innovation by putting 54,250 of its option contracts in play. Calls are currently outmoving puts by a factor of nearly 3.5. More than 13,650 contracts have moved at the August 30.0 call, which presupposes a nearly $4 rise in Corning share prices within the next month. Nearly 2,000 contracts have gone through at the January ‘08 35.0 strike. Implied volatility on Corning options stands at 35 percent – a significant elevation from the 20.8 percent historic variability in Corning share prices.
Options traders have rewarded the innovation by putting 54,250 of its option contracts in play. Calls are currently outmoving puts by a factor of nearly 3.5. More than 13,650 contracts have moved at the August 30.0 call, which presupposes a nearly $4 rise in Corning share prices within the next month. Nearly 2,000 contracts have gone through at the January ‘08 35.0 strike. Implied volatility on Corning options stands at 35 percent – a significant elevation from the 20.8 percent historic variability in Corning share prices.
Labels: Corning Inc., GLW, Verizon Communications Inc., VZ
posted by Stock Administrator @ 2:09 PM
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