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First Solar, Inc. Message Board

  • mikeedgar mikeedgar Jan 31, 2013 12:36 PM Flag

    Sell the Feb 1 - 28 options

    You can see that there's no movement on the shares today. The 28 put and call options expiring tomorrow are trading at about 39 cents each. Sell both and you'll net 2.8% in one day.

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    • you CAN NOT buy the puts or calls in First Solar. The short interest directs the price on any given day. this is WHY their is no interest in buying or selling the options. fools load

      Sentiment: Buy

    • I would normally say that is a good strategy but sell options going into a major economic news day is dangerous. The Jobs Report and the ISM Index are the most important economic reports of any month and they both come out tomorrow. FSLR is not overly sensitive to the indexes but still there is a risk in doing anything like what you offer.

      You have 78 points leeway on both directions, with 28.78 to the upside and 27.22 to the downside but the stock does have either a 26.00 downside objective or a 30.00 upside objective, which means that if you sell the options you could end up losing about $122 dollars per option sold.

      Risking $122 to pick up $78 dollars or less is not a good move even though the probabilities are in your favor.

      My opinion.

46.68-0.45(-0.95%)Jul 29 4:00 PMEDT