Options traders appear to be setting a short-term ceiling for the solar stock
Solar stocks are flying high today, after the U.S. International Trade Commission found that solar panel imports were negatively impacting domestic manufacturers. The agency will now pass along it recommendations to the Trump administration, which will decide whether to impose tariffs on the
solar imports -- with China one of the main manufacturers. One alternative energy name getting a big boost from the ruling is
SunPower Corporation (NASDAQ:SPWR). SPWR shares were last seen up 4.1% at $7.68, sparking a flood of activity in the stock's options pits.
By the numbers, 9,338 calls and 2,960 puts have traded on SPWR so far -- five times what's typically seen, and total options volume pacing in the 100th annual percentile. Despite the heavy call-bias, not all of the day's activity is of the bullish variety.
The stock's weekly 8/29 8-strike call is most active with 5,334 contracts traded, and it looks like the bulk of the activity is of the sell-to-open kind. If this is the case, the
call writers expect SPWR to remain below $8 through expiration at next Friday's close.
Although the security was trading north of $8 earlier this week, a three-day losing streak from Tuesday through Thursday brought the shares below here -- and south of two potential layers of technical resistance. Specifically, the $8 level coincides with the stock's formerly supportive 200-day moving average, as well as a 61.8% Fibonacci retracement of its March-to-July surge. Earlier today, SPWR shares topped out at an intraday peak of $7.87.
