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First Solar, Inc.'s weekly 12/5 55-strike call is garnering attention today
First Solar, Inc. (NASDAQ:FSLR) is up 3.7% to trade at $52.17, amid a sector-wide rally in alternative energy stocks, as the equity bounces back from last Friday's earnings-induced swoon. In options land, calls are preferred by a more than 2-to-1 margin over puts, with the former running at a nearly 50% mark-up to typical intraday levels.
Jumping right in, FSLR's most active option is the weekly 12/5 55-strike call, where roughly 1,500 contracts are on the tape. Nearly two-thirds have crossed at the bid price, and volume outstrips open interest, suggesting contracts are being sold to open. However, data from the International Securities Exchange (ISE) indicates some buy-to-open activity, too.
That said, the call writers anticipate FSLR will remain below $55 through the close on Friday, Dec. 5, when the weekly series expires. By contrast, the buyers are banking on the shares toppling the strike within that same time span.
On the charts, First Solar, Inc. (NASDAQ:FSLR) has had an up-and-down year. At its late-March high point, the shares hit $74.84 -- their loftiest perch since September 2011. However, the stock now sports a year-to-date loss of nearly 5%, and is testing support at its 100-week moving average, at $51.45.