Canadian Solar Inc. (CSIQ) Takes a Breather; Bulls Gear Up

Canadian Solar Inc. (CSIQ) weekly calls lead the way

by

Published on Feb 19, 2015 at 2:19 PM
Updated on Apr 20, 2015 at 5:32 PM

Canadian Solar Inc. (NASDAQ:CSIQ) has seen plenty of call buying in the past two weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day call/put volume ratio of 5.55 sits higher than 84% of all other readings from the past year. Today, that trend is continuing, as calls are crossing at an accelerated clip.

Speculators are targeting the weekly 2/27 26 call, which has seen nearly four times as much action as the next closest option. According to the data, it's a healthy mix of buy-to-open and sell-to-close activity. Those buying the in-the-money call are expecting CSIQ to rally further above $26 by next Friday's close, when the weekly series expires.

On the Street, sentiment is completely bullish. All five analysts covering the shares rate them a "buy" or better. Plus, the stock's 12-month consensus price target of $43.48 represents an upside of over 50% from current levels.

Canadian Solar Inc. (NASDAQ:CSIQ) was last seen 2.4% lower at $28.59, as the stock takes a breather from its recent rally. CSIQ has added 40% so far in February, and its 14-day Relative Strength Index (RSI) now stands at 71 -- in overbought territory, suggesting a short-term pullback may have been in the cards.


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