Bulls Target Canadian Solar Inc. and First Solar, Inc. as Solar Stocks Surge

Canadian Solar Inc. (CSIQ) and First Solar, Inc. (FSLR) calls are hot amid a solar-sector rally

Jun 5, 2015 at 2:09 PM
facebook X logo linkedin


Solar stocks are on fire this afternoon. While JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) is rallying in the wake of a bid to go private, and sector peer Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) is higher on predictions of profitability, Canadian Solar Inc. (NASDAQ:CSIQ) is in the black -- and garnering options attention -- after commenting on regulatory drama overseas. Not to be outdone, First Solar, Inc. (NASDAQ:FSLR) is flying high with its sector peers, and short-term option bulls are circling. 

CSIQ is up 3.8% at $32.71, bringing its 2015 gain to a respectable 35.2%. In the options pits, it looks like speculators are buying to open the June 35.50 call -- most active thus far -- to roll the dice on a move north of the strike by the close on Friday, June 19, when front-month options expire. 

Overall, Canadian Solar Inc. (NASDAQ:CSIQ) calls have more than doubled puts today, representing a major change of pace. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 1.80 stands higher than 96% of all other readings from the past year, pointing to a healthier-than-usual appetite for bearish bets of late. 

FSLR is flirting with a 3% lead at $51.14, continuing its positive June trend. Intraday call volume is running at three times the norm, and has outpaced put volume by a margin of roughly 4-to-1. Along with a few eleventh-hour bulls buying to open calls that expire at the close, it seems traders are initiating long positions at the weekly 6/12 50.50-strike call. 

By purchasing the calls to open at a volume-weighted average price (VWAP) of $0.94, the buyers' profit will increase the higher FSLR flies north of $51.44 (strike plus VWAP) within the next week, which represents the contracts' lifetime. Risk, meanwhile, is capped at the initial premium paid, should the security backpedal beneath the strike.

Again, today's appetite for bullish bets is relatively rare for First Solar, Inc.'s (NASDAQ:FSLR) short-term traders. The equity's Schaeffer's put/call open interest ratio (SOIR) of 0.98 registers in the 93rd percentile of its annual range, implying that near-term speculators have rarely been more put-biased during the past year. As FSLR extends its ascent, a mass exodus of option bears could add fuel to the security's fire.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI