Is Canadian Solar's slide ending?

Mike Yamamoto (mike.yamamoto@optionmonster.com)

A large put sale is betting that the steep decline in Canadian Solar is finally ending.

optionMONSTER's tracking systems detected the sale of 3,000 July 25 puts at the same second for the bid price of $3.10 yesterday. The volume was well above the strike's previous open interest of 1,223 contracts, clearly showing that a new position was established.

The put seller will keep the $3.10 credit as profit if CSIQ is above $25 upon expiration in mid-July. But if the stock is below that strike price, the trader will be on the hook to buy shares at that level.
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CSIQ fell 2.44 percent yesterday to close at $25.17, well off the session low of $23.01 but below its 200-day moving average. The Ontario-based solar-wafer manufacturer had climbed above $43 leading up to its last earnings release in early March, but it has been trending lower with the rest of the industry since those results came out. The company has not scheduled its next quarterly report.

Yesterday's put selling pushed total option volume in the name above 11,700 contracts yesterday, 2.5 times its daily average for the last month.


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