Amid Downturn, SunPower Corporation (SPWR) Put Buying Picks Up

SunPower Corporation traders anticipate a move below $23 in the next couple months

by

Published on Dec 30, 2014 at 2:27 PM
Updated on Apr 20, 2015 at 5:32 PM

SunPower Corporation (NASDAQ:SPWR) is off 1.3% this afternoon to trade at $25.80, bringing its year-to-date deficit beyond 13%. What's more, just overhead (at $26.20) the shares face a level of resistance in the form of their descending 30-day moving average. As such, at least one group of options traders is upping the bearish ante.

Today's most active SPWR strike is the February 23 put, where speculators are initiating long positions. In short, these traders are angling for the underlying to tumble back below $23 by the close on Friday, Feb. 20, when the back-month options expire. The shares briefly breached this level earlier this month -- hitting an annual low of $22.75 -- before bouncing to their current perch.

Today's put buying is business as usual for SunPower Corporation (NASDAQ:SPWR). The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio rests at an annual high of 4.66. In other words, traders have been buying to open SPWR puts over calls at a much faster-than-usual rate in recent weeks -- quite the change from the last time we covered the security.


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