Options traders are targeting FSLR and ENPH after the Senate's bill blueprint
The alternative energy sector is plummeting today, after the U.S. Senate's version of President Donald Trump’s spending bill kept cuts to solar and wind tax credits. The renewable energy incentives, introduced by former president Joe Biden, would be fully phased out by 2028.
At last glance, First Solar Inc (NASDAQ:FSLR) was down 19.5% at $141, on track for its worst single-session percentage loss since December 2011. Prior to today's gap lower, the shares had strung together consecutive weekly wins of over 5%, but the rally fell short of their 200-day moving average. Year-over-year, FSLR is down 45.6%.
Enphase Energy Inc (NASDAQ:ENPH) was last seen down 23.9% at $34.97, trading at five-year lows and headed for its worst day since April 2023. Year-over-year, ENPH is off 70.8%, carving a channel of lower lows since an Aug. 26 annual peak of $130.08.
Options traders are targeting both stocks amid today's rout. So far, FSLR has seen 48,000 calls and 30,000 puts exchanged, which is six times the overall options volume typically seen at this point in a session. The July 185 call is the most popular, followed by the 150 call in the same series, with new positions being bought to open at the latter.
ENPH has seen 39,000 calls and 44,000 puts cross the tape, eight times the intraday average options volume. The June 32 put is the most active contract, with new positions being bought to open there.