Solar Energy Name Announces Plans to Join S&P 500

SolarEdge put volume is running hot today

Digital Content Manager
Dec 6, 2021 at 10:40 AM
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The shares of SolarEdge Technologies Inc (NASDAQ:SEDG) are lower today, last seen down 1.3% to trade at $303.16, despite news that the alternative energy name will be joining the S&P 500 Index (SPX) on Dec. 20, alongside Signature Bank (SBNY) and FactSet Research Systems (FDS). The companies will be replacing Leggett & Platt (LEG), Hanesbrands (HBI), and Western Union (WU) amid a quarterly rebalance.

Over the last couple weeks, SolarEdge Technologies stock has pulled back dramatically from its Nov. 22, all-time high of $389.71. While the $290 level looks like it could contain today's losses, the shares are eyeing their first close below the 100-day moving average since early October. Year-to-date, SEDG has shed 7.6%.

The options pits do not echo much optimism. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.31, which stands higher than 91% of annual readings. This suggests short-term options traders have rarely been more put-biased towards SEDG. 

That penchant for puts is only getting reinforced today. Amid low absolute volume, 904 puts have crossed the tape so far, which is five times what is typically seen at this point. Most popular right now is the January 2022 300-strike put, followed by the March 280 put.

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