Today will complete a successful trade in Corning unless the stock falls 2.6% between now and today's market close the Dec 15th option will expire worthless.
As a reminder, Corning (GLW) is an expert working with glass. The company became exceptionally profitable by providing strong thin glass used in most smartphones, tablets, and TVs today. The company is also a leader in fiber optic cables.
Financials look great by reporting record breaking annual sales of close to $10 billion which is around 9% growth for the year. Corning has consistently generated attractive profit margins of 15%.
Long term shareholders are treated very well with the current dividend of around 2% and an attractive stock buyback plan.
Shares are trading attractively on a fundamental basis at EV/EBITDA of 10.7. Shares are also in a strong uptrend see below:
New Trade details:
Sell the February 16, 2018, $31 puts on Corning (GLW) @ $0.80 or better. Please use a limit order. You are agreeing to buy shares at a 2.6% discount to current share price and a 15% annualized return.
Should the market turn aggressively against us please close the position if Corning stock closes below $27.50.
Thank you for your reading.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.