Solar Stock Rises Ahead of Earnings

The stock has been middling above the $35 level

Deputy Editor
May 19, 2021 at 2:27 PM
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Renewable energy stock Canadian Solar Inc (NASDAQ:CSIQ) is up 3% to trade at $37.28 at last check. Recently, the equity has been middling above the $35 region, it's lowest point since November, after falling below the 200-day moving average for the first time since late June. Today's price action comes just ahead of the company's first-quarter report, due out before the open tomorrow, May 19, in which the solar power name is expected to post earnings of 41 cents per share.

Ahead of the event, the options pits are pricing in a post-earnings swing of 11.8%, regardless of direction, which is higher than the 8.9% move from the company's last eight quarters. Of these reports, six of CSIQ's next-day sessions were positive, including a 12.8% pop in March of 2020. 

Elsewhere, the options pits have been quite bullish. This is per Canadian Solar stock's 50-day call/put volume ratio of 2.31 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 91% of readings from the past year. This means long calls have been picked up at a much faster-than-usual rate during this time. 

Today, calls are still winning out in the options pits, with 2,247 calls across the tape so far in comparison to 1,583 puts. The May 40 call is the most popular, followed by the June 32 put. 

 

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