If you've followed us than you know we are bearish on FSLR. Absent a reverse split FSLR will be a a penny stock at some point this year, but we don't care about that. All we care about is how fast it moves, when that move will come, and how will we position ourselves for that move.
Today FSLR hit a brand new all time low. The shorts have this stock right all 42% of them, which is exactly why I think we will see sharp rallies as FSLR drops to $5. Rumors, news, upgrades, anything at all could create a nice pop in FSLR shares. With everyone betting against it, one mildly positive event will be enough to push this stock 20% higher in a short span of time. This 20% move will be highly profitable for those positioned for it.
I think that move is coming. It's happened each of the last two weeks. I called it two weeks ago and was able to book a nice profit.
I am positioned again for a move for FSLR. I bought the $19 calls for $.58. This will be just another flip before more flopping for FSLR.