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.