Schaeffer's 43rd Anniversary Stock Picks in 2024

Renewable Energy Stock Sees Options Surge

FSLR appears to be cooling off from its recent rally

Deputy Editor
Apr 4, 2022 at 2:40 PM
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Lately, it's hard not to speculate on what volatile oil and gas prices could mean for the clean energy sector, and whether consumers are now more open to renewable energy options. Amid this backdrop, First Solar In (NASDAQ:FSLR) has seen an unusually high amount of options activity.
 
More specifically, the stock has appeared onto Schaeffer's Senior Quantitative Analyst Rocky White's list of names on the S&P MidCap 400 Index (SP400) that have attracted the most weekly options volume in the last two weeks. During this time, 106,955 calls and 24,505 puts were exchanged. The January 2023 95-strike call was the most popular, followed by the weekly 4/1 90-strike call.

 

MAO April4

FSLR is sliding today, down 0.5% to trade at $83.61. Though the stock has rallied since its Feb. 24, 17-month low of $61.24, the $85 level seems to be keeping a tight lid on the equity, with pressure also coming from its 100-day moving average. A pullback could be overdue, however, as First Solar stock's 14-day relative strength index (RSI) of 78 sits on the cusp of "overbought" territory. Year-to-date, the equity is down 4.4%.

FSLR April4

Analysts are mostly hesitant on FSLR. Of the 14 in coverage, 11 carry a "hold" rating, with three say "strong buy." Meanwhile, the 12-month consensus price target of $83.90 is in line with the current price. 

It's also worth noting the equity's Schaeffer's Volatility Scorecard (SVS) stands at an elevated 86 out of 100, meaning Humana stock has exceeded options traders' volatility expectations during the past year.

 

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