FSLR A Few More Flops Before It Dies

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We wrote last year how the Solar stocks were going to become the shipping stocks of 2008 - 2009.  It looks like we are going to be right again.  FSLR today hit another all time low.  The stock is dropping like a stone, but I see a few short covering rallies before the stock ultimately goes into the penny stock range.  FSLR, for the remainder of 2012, will trade like a fish out of water, flopping around and gasping for air.  The shorts have taken this fish out of its tank.  Over 44% of the stock is shorted, just a crazy number, and this will lead to wild short squeezes, perhaps fueled by unsubstantiated rumors.

How do we trade for these impending pumps?  Buy out of the money call options.  I like to dabble the 10-15% higher strikes and currently hold both the $22 and $23 weekly calls.  If we get a 10-15% short squeeze those calls will pay off handsomely.  If we don't I will just roll over to next week.

Look at the chart for FSLR since it first went public in 2006.  Looks like a fabulously orchestrated pump and dump.

 

 

The Waltons (yes Wal-Mart owners) have been selling FSLR stock hand over fist, as has the current CEO, with most sales in the mid to upper $100's.  Must be nice to own a boat load of shares and sell them while everyone else is buying.

Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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