Tag Archives: puts

SodaStream International (SODA)

We wrote about SodaStream International last week, and it's quite easy to figure out where we think this stock is going. Thinking is one thing, but actually going? Well thats where Option Traders make their money. Sometimes folks relate the stock market to a casino, where folks place bets in the hopes of getting some return on their investment.

And just like a craps table, you are able to see bets placed on stocks. Are they going up? Check the open interest on the calls. Are they going down? Check the open interest on the puts. Now there are other factors that can have an impact on open interest, like folks buying some calls to hedge their short position, and vice versa. But odds are, if the open interest in the calls far exceed the open interest in the puts, folks are betting on a stock going higher.

And there is no better measurement then the current months options.

Look below to see the March Calls/Puts for SodaStream International(SODA). I am not a brain surgeon nor a rocket scientist, but i do think the rocket scientist may agree on where folks are betting SodaStream International(SODA) moves in the next few weeks.

And i don't want to flatter myself or the site in saying we brought folks into the call side.


FSLR – First Solar under $40 on lower guidance

First Solar issued lower guidance for FY '12 this morning and the market responded,  giving the stock a 20% mohawk and taken to the proverbial WOODSHED.

We have been all over the demise of the solar sector, and todays news is only the tip of the iceberg : (LINK)


Quite honestly, last weeks asset sale should have been a clear signal to get the heck out of the stock if you were long, and go short/puts.:
As of today, Sunpower (SPWR) and First Solar(FSLR) remain the last two solar companies trading above the dreaded $5 level. It will only be a few more months before our bold prediction comes to fruition : (LINK)

Its trades like this that can make your year , and ensure your days are spent trading stocks and not flipping burgers.



FSLR – First Solar Selling Assets? Not a good sign.

When a press release combines Buffet and Billions, the stock attached to that release, is sure to see some upside action. First Solar released news this morning that it was selling its much hyped $2 billion topaz farm project to MidAmerican Energy Holdings Co. This stock has been taken to the woodshed this year, and soared 10%+ to 51.86 in morning trade on the news.

Now folks who read our blog and spend time in our chatroom, know our feelings on FSLR. We have written about FSLR the past few months, and have played her like a textbook. Which means buying puts into a Gap... Which is what we did today.



FSLR still remains a troubled company, and the asset sale confirms that. Folks buying into the hype, were taught a lesson, as the stock closed at $47.99.

We went short via the $47 and $48 PUTS after the open on Wednesday, and our options were up 300%+ on the day. We fully expect FSLR to touch the $45 level before the weeks out.


Below is the news from Marketwatch:


By Melodie Warner

First Solar Inc. FSLR +4.08% agreed to sell a solar power plant being built in California to MidAmerican Energy Holdings Co. as part of the solar-panel maker's plans to reduce spending.

The $2 billion Topaz Solar Farm project -- a 550-megawatt photovoltaic power plant being built in San Luis Obispo County, Calif. -- will have the capacity to generate enough renewable energy to power about 160,000 average homes. Pacific Gas & Electric Co. will purchase the electricity under a 25-year power purchase agreement.

First Solar has agreed to construct, operate and maintain the Topaz project for MidAmerican, an energy services provider. Construction is expected to be complete by early 2015.

First Solar said in October it intended to reduce spending next year and was looking at opportunities to reallocate overhead expenses to fund increased investments in research and development, among other things.

The company reported its third-quarter profit climbed 11% but badly missed expectations despite a 26% jump in sales.

Shares were trading 3.6% higher at $47.75 premarket. The stock has fallen 65% so far this year through Tuesday's close.