Short Sellers, Option Bears Flock to First Solar, Inc. (FSLR)

First Solar, Inc. (FSLR) short interest spiked nearly 30% in the latest reporting period

Jul 27, 2016 at 3:05 PM
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Earlier, we looked at a couple of stocks burning short sellers on the heels of standout earnings reports. That most certainly isn't the case with First Solar, Inc. (NASDAQ:FSLR). Short interest on the solar stock has been booming -- as have bearish options bets -- and based on its dismal technicals, this collective skepticism is well-deserved.

Diving right in, among all stocks trading at least one million shares per day -- or that trade weekly options -- FSLR saw one of the 30 biggest increases in short interest during the most recent reporting period. Specifically, short interest on the solar stock spiked 29.4%, and now accounts for almost 15% of its float.

Meanwhile, the bears have been out in force in the options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FSLR's 50-day put/call volume ratio of 0.79 outstrips four-fifths of all readings recorded in the past year. In other words, traders have been placing bearish bets over bullish at an accelerated clip.

As alluded to, First Solar, Inc. (NASDAQ:FSLR) has brought this negativity upon itself, based on its failures on the charts. Last seen at $48.61, the stock sports a dreadful year-to-date loss of 26.3%. Plus, FSLR shares are currently running into a potential layer of resistance at their descending 60-day moving average.

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