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Trina Solar draws more put selling

Chris McKhann (chris.mckhann@optionmonster.com)

Traders are selling puts in large volume in Trina Solar for the second day in the row.

optionMONSTER systems detected the sale of 10,632 June 4.50 puts this morning for the bid price of $0.32. The open interest at that strike was just 271 contracts before the session began, clearly indicating that this is a new position.

The put selling is betting that recent gains in TSL will hold in the next six weeks. The trader will profit as long as shares remain above $4.50 through that mid-June expiration but face the obligation to buy the stock if they fall below that strike price. The action follows heavy put selling in the June 4 strike yesterday. (See our Education section)

TSL is surging 9.6 percent to $5.25 this morning, a day after bouncing off its 20-day moving average just above that $4.50 level. The solar-energy products manufacturer was below $4 two weeks ago.

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