Traders Hungry for Short-Term Canadian Solar (CSIQ) Options

Traders are gambling on Canadian Solar Inc.'s (CSIQ) end-of-week trajectory

Digital Content Group
Mar 23, 2015 at 3:02 PM
facebook X logo linkedin

Option skeptics have taken a shine to Canadian Solar Inc. (NASDAQ:CSIQ) in recent weeks. The alternative energy stock's 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 1.05 -- in the 94th percentile of its annual range.

However, it's possible some of these long puts have been initiated by shareholders seeking a downside hedge. After all, CSIQ has outperformed the broader S&P 500 Index (SPX) by 76 percentage points over the last 40 sessions, boosted by a recent earnings beat.

In today's options pits, calls are the contracts of choice, and are crossing the tape at 1.2 times the expected intraday amount, and outstripping puts 3,691 contracts to 2,394. Specifically, CSIQ's most active option is the weekly 3/27 36-strike call, with data from Trade-Alert hinting at a mix of buy- and sell-to-open activity. For those initiating long calls, these speculators expect the underlying -- which is up 3% at $35.90 -- to topple $36 by Friday's close, when the weekly series expires. For those writing the calls to open, the goal is for CSIQ to settle the week south of $36.

Meanwhile, it looks like another group of traders is selling to open the weekly 3/27 35-strike put. In so doing, these bettors anticipate Canadian Solar Inc. (NASDAQ:CSIQ) will maintain its perch atop $35 through the end of the week.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI