Specialty display manufacturer Corning (GLW) is up 51% over the past year, far outperforming the overall stock market. One trader is betting on a further rally in the quarters ahead.
That’s based on the November $60 calls. With 262 days until expiration, 22,922 contracts traded compared to a prior open interest of 191, for a massive 120-fold rise in volume on the trade. The buyer of the calls paid $1.90 to make the bullish bet.
Corning shares recently traded for about $50, so the stock would need to rise by $10, or 20%, for the trade to move in-the-money. The stock hit a 52-week high of $55.33 at the start of 2025 before pulling back, and the stock is well positioned for a short-term rebound.
Corning’s technology makes it a key player for any touchscreen device, including tablets and smartphones. Over the past year, revenues are up 17%, although earnings growth has been negative.
Action to take: Investors may like shares for a short-term rebound now. Growth has been slow as consumer spending on tech devices has slowed. And with shares trading at 20 times forward earnings, it’s not quite a value play yet.
At current prices, Corning also pays a 2.3% dividend.
For traders, the November $60 calls are well positioned for a further rally this year. Aggressive traders could look to take quick profits from a market rebound in the weeks ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may further trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
