Schaeffer's Top Stock Picks for '25

Pre-Earnings Bulls Stream to Canadian Solar Inc. (CSIQ)

Canadian Solar Inc. (CSIQ) will report quarterly earnings tomorrow morning

May 6, 2015 at 10:46 AM
facebook X logo linkedin


Alternative energy stocks are taking it on the chin today, and Canadian Solar Inc. (NASDAQ:CSIQ) is no exception. The shares were down 2.6% at last check to trade at $34.98 -- but remain 44.6% higher year-to-date. However, in the options pits, one group of traders is expressing confidence.

Diving right in, the July 37 call is seeing what looks like buy-to-open activity. By purchasing these positions, speculators anticipate CSIQ will bounce back and topple $37 by July options expiration.

Therefore, these option bulls are likely counting on an earnings beat for CSIQ, which will report bright and early tomorrow. The stock tends to swing wildly in the wake of these events, averaging a 12.9% move following the company's last eight quarterly reports -- including a 14.6% gain in early March.

Taking a step back, options traders have been growing increasingly skeptical toward CSIQ in recent weeks. The equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.66 outstrips 80% of comparable readings from the past year.

On a similar note, Canadian Solar Inc.'s (NASDAQ:CSIQ) Schaeffer's put/call open interest ratio (SOIR) stands at 1.14. Not only does this SOIR indicate put open interest outweighs call open interest among options expiring in three months or less, it also rests just 5 percentage points from a 52-week peak.
 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?