First Solar Stock Hits 14-Year High After Upgrade

Options traders are already blasting the security

Deputy Editor
Mar 3, 2023 at 10:45 AM
facebook X logo linkedin


According to UBS, First Solar, Inc. (NASDAQ:FSLR) could be a major beneficiary of the Inflation Reduction Act's (IRA) manufacturing tax credits. The firm upgraded FSLR to "buy" from "neutral," and raised its price target to $250 from $140, noting it could add more than 25% thanks to IRA credit tailwinds. In response, First Solar stock was last seen 2.6% higher at $203.39.

The security is trading at its highest level since 2009, with shares also pacing for their fifth-straight daily win, as well as their best weekly gain since November. Year-over-year, FSLR is up 203.3%.

Evercore ISI and Goldman Sachs also weighed in on the solar stock recently, hiking their price targets to $192 and $260, respectively, before yesterday's open. There's room for more analysts to join the bullish bandwagon, as eight of 21 in coverage still rate the equity a "hold," while the 12-month consensus target price of $185.03 is a 9.6% discount to current levels.

An unwinding of pessimism could bode well for First Solar stock, too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day put/call volume ratio of 1.29 sits higher than 85% of annual readings.

Echoing this, FSLR's Schaeffer's put/call open interest ratio (SOIR) of 1.97 stands in the 87th percentile of the past 12 months, indicating a put-bias amongst short-term options traders.

A shift seems to be taking place, with 24,000 calls traded so far today, or six times the intraday average volume, compared to 13,000 puts. New positions are opening at the three most popular contracts -- the weekly 3/3 210- and 205-strike calls, and the 200-strike put.

Those looking to join in on the action should consider options. The stock's Schaeffer's Volatility Index (SVI) of 46% stands higher than just 11% of reading from the past year, which shows options traders are pricing in low volatility expectations at the moment -- a boon for premium buyers. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI