Is the sun finally rising for First Solar?

Traders are looking for a new dawn at First Solar.

The alternative-energy stock has been devastated along with others in its industry as government subsidies run dry and excess capacity crush prices. A year ago, it fetched more than $120, fell as low as $11.43 in early June, but has been rebounding since then. Shares are up 6.7 percent to $15.44 in afternoon trading today.

optionMONSTER's Heat Seeker monitoring system detected two large bullish trades so far today. In the first, 4,900 September 18 calls were bought for $0.69 and 9,800 September 22 calls were sold for $0.185. Volume was more than triple open interest at both strikes.

The trade cost $0.32 and will earn a maximum profit of 1,150 percent if FSLR closes at $22 on expiration. Gains will erode above that level because they're short twice as many calls as they're long in this ratio put spread . If done in isolation, that will causes losses above $26.

However, the transaction could also be a so-called stock-repair strategy by an investor who bought shares in the past and wants to get his or her money back. In that case, he or she is looking for leveraged gains on the push back to $22 and is willing to unload their stock at that level. (See our Education section)

A little more than an hour later, some 5,010 January 2014 15 calls were purchased for $4.70 and $4.75. Those are more straightforwardly bullish and stand to profit from a sustained rally over the next 18 months.

Overall option volume in FSLR is triple the daily average so far today, with calls outnumbering puts by 5 to 1.

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