Owens Corning Options Strategy: $115 Put Contract Offers Significant Appeal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Source: NASDAQ.COM
- Put Option Appeal: The $115 put option for Owens Corning has a current bid of $11.40, and if an investor sells to open this option, they commit to buying the stock at $115, effectively lowering their cost basis to $103.60, which represents a 7% discount compared to the current price of $123.02, making it attractive for those looking to enter at a lower price.
- Yield Potential Analysis: Should the put option expire worthless, it would yield a 9.91% return on the cash commitment, or 10.64% annualized, enhancing the strategy's appeal in terms of risk management and yield enhancement, particularly in a volatile market environment.
- Call Option Returns: The $130 call option has a current bid of $14.00, and if an investor buys shares at $123.02 and sells this call, they could achieve a total return of 17.05% if the stock is called away at expiration, providing an additional income opportunity for investors.
- Market Volatility Consideration: The implied volatility for the put option stands at 40%, while the call option is at 38%, with the actual trailing twelve-month volatility calculated at 37%, offering crucial market context for investors when selecting their options strategies to make informed decisions.
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Analyst Views on OC
Wall Street analysts forecast OC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OC is 135.42 USD with a low forecast of 113.00 USD and a high forecast of 163.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
8 Buy
6 Hold
0 Sell
Moderate Buy
Current: 120.570
Low
113.00
Averages
135.42
High
163.00
Current: 120.570
Low
113.00
Averages
135.42
High
163.00
About OC
Owens Corning is a building products company. The Company's segments include Roofing, Insulation and Doors. The Company's Roofing segment manufactures and sells residential roofing shingles, oxidized asphalt materials, roofing components and composite lumber primarily used in residential construction. This segment also manufactures and sells glass mat and specialty veil materials used in building and construction applications. Its Insulation segment manufactures and sells thermal and acoustical batts, loose fill insulation, spray foam insulation, wet used chopped strand, foam sheathing and accessories. It also manufactures and sells glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated stone wool insulation, cellular glass insulation, and foam insulation used in above- and below-grade construction applications. The Company's Doors segment manufactures and sells interior and exterior doors and door systems primarily used in residential construction.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Meta Partners with Corning for $6 Billion Fiber-Optic Deal
- Major Investment Agreement: Meta has committed to paying Corning up to $6 billion by 2030 for fiber-optic cables for its AI data centers, significantly enhancing Meta's competitive edge in AI infrastructure development.
- Surging Demand: Corning's optical communications revenue jumped 33% year-over-year to $1.65 billion in Q3, reflecting that AI data centers require far more fiber than traditional cloud computing, driving total sales up 14% to $4.27 billion.
- Technological Innovation: Corning's newly developed AI-specific fiber, named 'Contour', can fit twice as many strands into a standard conduit and reduce the number of connectors, thereby improving data transmission efficiency to meet the urgent needs of clients like Meta for higher computing capacity.
- Optimistic Market Outlook: Corning's CEO anticipates that hyperscalers will become its largest customers next year, as the proliferation of AI technology continues to drive fiber demand, further solidifying Corning's market position in optical communications.
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