Trina Solar rallied yesterday, but investors are hedging their exposure.
optionMONSTER's tracking systems detected a surge of activity in the Chinese green-energy company, which lost more than 80 percent of its value between April and October of last year.
The March 8 calls were the most active contract, trading more than 6,600 times against open interest of 2,191. Most of the calls traded for $1.13 to $1.59, the bulk of which priced closer to the bid than the ask, which means they were sold.
The March 8 puts were the next busiest contract, but they were bought for $0.58 to $0.75. Volume approached 5,800, almost 7 times previous open interest. The fact that puts were bought at the same time that the stock rose indicates investors used them as protection while scooping up shares. (See our Education section)
TSL surged 13 percent to $9.23 yesterday and is attempting to fight its way back from a massive collapse in the solar-energy industry last year. While pricing remains weak, some bargain hunters may like the stock because it trades for about half its book value.
Overall option volume in TSL was 5 times greater than average in yesterday's session.
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