Option Focus | Corning's $3.6 Million Out-of-the-Money Put Sale Signals Bullish Premium Collection After Sharp Decline

Option Witch07-17 13:31

Corning closed at USD 158.39, a decline of 9.19% from the prior close. Following a sharp drop, significant options activity emerged, highlighted by a large, bullish put sale that collected over $3.5 million in premium, suggesting a view that the sell-off may be overdone.

Options Indicators

GLW’s implied volatility is 97.74%, and with an IV percentile of 99.60%, current option volatility sits at an extremely elevated level versus its own historical range, indicating that options are priced expensively rather than cheaply. Although the IV/HV ratio of 0.83 suggests implied volatility is not far out of line with realized movement, the percentile reading is the more important takeaway here: relative to its past behavior, the market is assigning very rich premiums, so outright option buying faces a higher cost hurdle while premium-selling structures or defined-risk spreads may be more efficient.

The Call/Put volume ratio is 0.60.

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Large Trades

A PUT sale worth $3.56 million stood out as the key large trade, with 5,120 contracts sold on the September 18, 2026 $120.00 put. With GLW referenced at $158.39, this strike sits out of the money, making the trade a moderately bullish premium-selling position. By selling this put, the trader is expressing confidence that GLW will remain above $120.00 through expiration, while collecting option premium and potentially signaling a willingness to accumulate shares at a much lower effective entry level if assigned.

Overall sentiment from the full large-trade flow was bullish, with total bullish premium at $3.56 million versus $0.00 million bearish, for a net bullish difference of $3.56 million. The directional bias is clearly positive, as the entire notable flow was concentrated in an out-of-the-money put sale, a structure typically associated with premium collection and constructive downside confidence rather than hedging or outright bearish positioning.

Strategy Reference

Given the high IV percentile, premium sellers could consider a defined-risk put spread, such as selling the $120 put and buying a lower-strike $110 put for protection to reduce margin requirements, while still capitalizing on elevated premiums.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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