Corning draws downside positions

Traders are positioning for more potential downside in Corning.

optionMONSTER's Depth Charge system shows that more than 12,000 November 17 puts were bought mostly for $1.03 to $1.12 yesterday. This represents new positions, as open interest in the strike was only 2,602 contracts before the session began.

Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position. (See our Education section)

GLW fell 3.08 percent to $16.98 yesterday and is down more than 23 percent this year. The glass and screen manufacturer rebounded from losses that took shares down to $15.42 last month, but it has pulled back since trading above $18 last week.

The company's next earnings report is expected in late October, before yesterday's puts expire.

Total option volume in the name was just shy of 34,000, more than 9 times its daily average for the last month. Overall puts outnumbered puts by 5 to 1.

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