Suggest Locking in 50%+ Gain on FSLR June 100 Puts
Posted: 18 February 2010 01:53 PM   [ Ignore ]  
Total Posts:  49
Joined  2008-05-06

February 18, 2010 - Since we suggested selling First Solar (Nasdaq:FSLR) June 100 puts last week at about $10.30 when the stock was dipping to $108, the stock has moved back to $126 and the puts have declined to $4.90, which would mark a 50%+ return on the puts if you close the position.

This is too strong of a return in so short a period of time to pass up, so we would suggest that if you made this trade last Wednesday, you not get too greedy and close.

We think the broader markets have more downside to them than upside at current levels, which, if we are right, would mean downward pressure on FSLR, so there might by an opportunity to make a similar trade again.

After all, we made a similar recommendation back on February 26, 2009 when FSLR had sold off to similar levels and that trade would have worked out well for those making it as well (look it up in our archives).