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New Trade – Corning Inc (GLW) put selling

I had Corning in my watch list for some time. It was a featured company in Morningstar as a potential new gainer. I like the company what i have read about it so far.

It is a four star stock and Morningstar estimates the fair value at $15 a share. My own calculation indicates 17 a share with 28% safety margin and annual expected return at 26%.

The stock pays dividend at $0.36 annual rate, which provides 2.91% yield. The 5yr dividend growth rate is currently at 30%, the company pays the dividend since 1990 and increased the dividend for 2 consecutive years.

I decided to sell 1 put contract on this stock and i will be OK if I get assigned to the stock:

02/26/2013 15:10:03 Sold 1 GLW Aug 17 2013 12.0 Put @ 0.78

I’ll keep you posted if I get assigned or keep the premium and repeat the process.

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