Schaeffer's Trading Floor Blog
Stocks quoted in this article:

Stocks are modestly higher on quadruple-witching Friday, with the major market indexes exploring all-time peaks. Meanwhile, among the equities in focus are solar concerns JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO), JinkoSolar Holding Co., Ltd. (NYSE:JKS), and Trina Solar Limited (ADR) (NYSE:TSL), which have all attracted analyst attention.

  • JASO has tacked on 0.9% to wink at $10.85, despite a lukewarm "neutral" initiation at Credit Suisse. The stock has tacked on more than 18% so far in 2014, yet pessimism prevails. More than 15% of JASO's float is dedicated to short interest, and option buyers have picked up puts over calls at an annual-high clip during the past 10 weeks on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). As a result, the equity's Schaeffer's put/call open interest ratio (SOIR) stands just 2 percentage points from a 12-month high, indicating short-term option players have rarely been more put-biased during the past year.

  • Credit Suisse was more optimistic toward JKS, initiating coverage with an "outperform" rating. As a result, the shares were last seen 1.6% higher at $28.25, and have more than tripled over the past year. JKS is no stranger to analyst affection, though; all four brokerage firms following the stock deem it worthy of a "buy" or better rating. In the same vein, the equity's SOIR of 0.61 stands higher than just 6% of all other readings from the past year, pointing to a bigger-than-usual call skew among options expiring within three months. What's more, JKS' short-term options are relatively cheap right now. The equity's Schaeffer's Volatility Index (SVI) of 67% ranks in the 4th percentile of its annual range, implying soon-to-be front-month contracts are historically inexpensive.

  • Finally, TSL has edged 0.7% higher to $12.78, after a new "neutral" rating at Credit Suisse. The security has struggled in 2014, giving up 6.4%, with recent rebound attempts stifled by its 10-week and 20-week moving averages. Against this backdrop, short interest rocketed 18.6% higher during the most recent reporting period, and now accounts for almost 20% of TSL's total available float. Meanwhile, the stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.31 stands higher than 64% of all comparable readings from the past year, hinting at a healthier-than-usual appetite for long puts over calls of late.

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