Are First Solar, Inc. (FSLR) Option Traders Switching Sides?

First Solar, Inc. (FSLR) traders are buying March calls

Mar 17, 2015 at 3:20 PM
facebook twitter linkedin

First Solar, Inc. (NASDAQ:FSLR) has been on a tear, with the shares up 36.3% year-to-date to linger near $60.76, including a 0.9% gain today. Accordingly, bullish activity in the options pits is ramping up, echoing last week's trend.

In afternoon action, calls have more than tripled puts. Two of today's most active contracts are the March 59 call and the March 60 call, both of which are seeing a large amount of potential buy-to-open activity. By purchasing these calls, traders expect the security to keep muscling north of the strikes by the close on Friday, when the contracts expire. Delta on the March 59 call stands at 0.77, implying a 77% chance of expiring in the money, while delta on the March 60 call reads 0.62.

In the options pits, near-term puts are more prevalent than usual, as FSLR's Schaeffer's put/call open interest ratio (SOIR) of 0.94 reads higher than 90% of all similar readings taken over the past year. Simply stated, short-term option players are more put-heavy than they have been over the past year.

Elsewhere, the brokerage bunch is divided on the equity, with eight out of 15 covering analysts rating the stock a "hold," and the remaining seven doling out "buy" or better opinions. What's more, First Solar, Inc.'s (NASDAQ:FSLR) consensus 12-month price target of $63.15 is a chip-shot away from current trading levels. Upbeat analyst attention could help FSLR add to its year-to-date lead.

Daily Chart of FSLR Since September 2014

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1