September 2009  |  Members

1:15pm (EST) UPDATE:  I am long the September 100 puts (QHBUT) at $1.25.

 

12:10pm (EST)

I’ve been talking about First Solar (FSLR, $116.63, down $4.95) lately and I have been looking to do a strangle trade on the stock.  On Sunday night, the stock was at $124 and finished Monday at $121.58, down $2.63.  Today’s 5% drop has got me taking a closer look at the charts.

First Solar is the nation’s largest solar panel maker and industry leader.  Shares of First Solar were going for $150 at the beginning of the month.  The company has its work cut out for them in the near-tem, the biggest being the delayed construction of one of its projects.  The company is losing its top brass left and right…First Solar’s current CEO has announced he is stepping down.

The chart has been bearish for awhile and a break below $116 could clear the way to $108.

The September 105 puts (QHBUA, $2.00, up $0.57) opened at $1.43 this morning and have traded about 600 contracts so far.  The September 100 puts (QHBUT, $1.20, up $0.45) have traded over 1,300 contracts and are up 60%.  These put options opened at 80 cents.

I like the 100’s and would use a limit order of up to $1.30 to get into this position.  The current price is $1.20 so try to get them for that or $1.25.  I’d like to see a pop to $1.85 over the next few days.  This could be a quick trade so check for updates.