My Trade Details:

  • FSLR Oct 28 2022 123 Put near $5
  • Stop: Close above $131
  • Target 1: $116
  • Target 2: $110


FSLR – Your Bullseye Pick Of The Week - Bullseye Pick of the Week

I’ve been bearish solar for a few weeks now. I really felt that too many people were hiding out in this space as the rest of the market was falling and that sooner or later the rug would get pulled. I finally pulled the trigger on the Idea Monday and FSLR tanked. Here’s what happened

Unfortunately I didn’t get filled. I had my order in at $5 but FSLR only got to $5.15. It then went over $10 in 1 day! 

Here was my reasoning:

This week, I am betting against one of the biggest stocks in one of the summer’s best sectors.  I think the air will continue to deflate from solar stocks and FSLR in particular.

In early October, FSLR hit its highest price in over a decade as investors were piling into solar stocks.  The last couple of weeks we have seen a steady decline in the sector in general.  FSLR has not had a huge drop yet, but I think it is around the corner.

Earnings are coming up on Oct 26, so be aware of that if you decide to trade it into next week.

I think FSLR could drop to $115 soon, if I am right.  That would be my first profit target.

If I am wrong, I am looking at a close above $131, which is the mid-point of the recent Keltner range, and above the 5-day moving average.