Corning (GLW) 3/19/10 PriceWatch Alert With Support Around $18.95

Posted: Friday, March 19, 2010 8:46 AM EDT
By: Market Intelligence Center Staff

Corning (NYSE: GLW) closed yesterday at $19.24. So far the stock has hit a 52-week low of $12.07 and 52-week high of $20.85. Corning stock has been showing support around 18.95 and resistance in the 19.59 range. Technical indicators for the stock are Bullish and S&P gives GLW a positive 4 STAR (out of 5) buy rating. GLW appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at an Aug '10 19 covered call for a net debit in the $17.59 area. That is also the break even stock price for this trade. This covered call has a 155 day duration, provides 8.58% downside protection and an 8.02% assigned return rate for an 18.88% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the GLW Jan '11 15 Call and selling the Aug '10 19 call for a $3.30 debit. The trade has a 155 day life and would provide 4.89% downside protection and a 21.21% assigned return rate for a 50.00% annualized return rate (for comparison purposes only). Corning has a current annual dividend yield of 1.08%. [FBB-Seven Summits Research]