The Best Way to Play Corning's Recovery

The following video is part of a special series in which Motley Fool analyst Andrew Tonner and "Options Whiz" Jeff Fischer discuss how to make 2012 the year YOU master the market. In this edition, Jeff shows Corning bulls the best way to profit from the company's recovery.

For more details on how to trade Corning using similar options strategies with as much potential or more, just click here.

You’ll be directed to the Motley Fool Options Whiz -- our interactive "Options U" designed to teach you to trade options sensibly, with a minimum of risk, and all the resources of The Motley Fool behind you -- all 100% FREE!

Jeff Fischer owns shares of Apple, and Andrew Tonner does not own shares of the companies mentioned. The Motley Fool owns shares of Apple and Microsoft. Motley Fool newsletter services have recommended buying shares of Microsoft, Corning, and Apple; and creating bull call spread positions in Apple and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (3) | Recommend This Article (12)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 07, 2012, at 3:56 AM, adamcohen wrote:

    This is an awesome trade!!

  • Report this Comment On March 02, 2012, at 7:30 PM, library5214 wrote:

    I wrote in on this article before and you removed the comments. You seem to remove comments that you don't like.

    This trade is very poorly thought out. Briefly, it doesn't take into account the cost of the margin on the short side. Taking that into account this trade is no better than buying this stock on margin, and in many cases will work out worse.

    You need to think things through better before you publish.

  • Report this Comment On May 11, 2014, at 11:12 AM, TMFFischer wrote:

    Hi library5214,

    I don't think comments are ever removed (unless they violate some posting rules -- such as profanity or linking to something you're selling). But anyway, this was a brief video. A synthetic long (which has done very well in this case) is simply a way to mirror stock ownership without needing to put up the capital on day one. Yes, your broker needs to set aside equity to hold the short puts open, but it's much less (in a traditional account) than the full cost of buying the stock. And as long as you are ready to buy the stock, should it come to that, it's no more risky.

    Thanks for posting... (though long ago)...

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