Long-Term Skeptics Pile On Canadian Solar Inc. (CSIQ)

Canadian Solar Inc. (CSIQ) is having a down day on earnings

by Alex Eppstein

Published on May 7, 2015 at 1:19 PM
Updated on Jun 24, 2020 at 10:16 AM

Bad news for yesterday's Canadian Solar Inc. (NASDAQ:CSIQ) bulls -- the alternative energy stock is 1.5% lower on poorly received first-quarter results. Meanwhile, options traders are busier than usual, with calls and puts both crossing the tape at more than twice the average intraday rate.

One option seeing likely buy-to-open activity is the January 2016 28-strike put. The speculators scooping up these bets are banking on CSIQ to descend below $28 -- territory not charted since mid-February -- by January 2016 expiration.

This pessimism is fairly normal on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). During the past 10 days across those exchanges, CSIQ has racked up a put/call volume ratio of 0.81 -- in the 86th annual percentile. In other words, traders have bought to open puts over calls at a faster rate just 14% of the time in the last 12 months.

Technically speaking, though, Canadian Solar Inc. (NASDAQ:CSIQ) has performed well. Year-to-date, the shares remain over 40% higher, and they've bested the S&P 500 Index (SPX) by 27 percentage points during the last 60 sessions.

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