Option Traders, Analysts Split on Canadian Solar Inc. (CSIQ)

Canadian Solar Inc. (CSIQ) is rallying on news out of China

by Alex Eppstein

Published on Feb 2, 2015 at 11:27 AM
Updated on Apr 20, 2015 at 5:32 PM

Canadian Solar Inc. (NASDAQ:CSIQ) has been in the bearish crosshairs of late. Put buyers have been circling the alternative energy stock, per its 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.83. Not only does this ratio indicate long puts have been initiated at nearly three times the rate of calls, but it also ranks in the 96th annual percentile -- suggesting puts have been bought to open with greater rapidity just 4% of the time in the last year, relative to calls.

As such, CSIQ's Schaeffer's put/call open interest ratio (SOIR) checks in at 0.77. This metric is higher than 91% of all comparable readings from the past 12 months, hinting at a stronger-than-usual put-skew among traders targeting short-term options.

On the flip side, all five analysts covering CSIQ have doled out a "buy" or better recommendation. Plus, the equity's consensus 12-month price target of $42.46 is nearly double the current price of $21.24.

Around midday, Canadian Solar Inc. (NASDAQ:CSIQ) is up 4.2% on encouraging solar developments out of China. Also, the shares are poised to close atop their 20-day moving average -- which served as resistance last month -- for the first time since Jan. 9.


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