Investors in Corning Inc (NYSE: GLW) can now trade new options expiring in May 2027. The current trading price is $228.03. Notably, a put contract available at a $220.00 strike price has a bid of $60.45, allowing investors to effectively acquire shares at a cost basis of $159.55, presenting a 4% discount from the current price. This strategy could yield a 27.48% return on cash commitment, or 30.95% annualized, assuming the option expires worthless, with a 69% probability of this outcome.
On the calls side, a $260.00 strike price call contract has a bid of $64.15. If an investor buys shares at the current price and sells the call, they could see a total return of 42.15% if the contract is exercised by expiration. The strike price is approximately 14% above the current trading price, with a 39% chance of the call expiring worthless, in which case the investor retains both the shares and the premium, representing a 28.13% extra return or 31.69% annualized.
The implied volatility for the put and call contracts stands at 86% and 87% respectively, while the actual trailing twelve-month volatility is calculated at 62%.
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