Bullish call buying is extreme in Canadian Solar today as buyers
pour into the green-energy sector.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 2,500 July 26 calls, most of which priced for $2.40.
Volume was more than 4 times previous open interest, which
indicates that new money was put to work.
give traders the right to purchase CSIQ shares for $26 through
expiration, no matter how high the stock may be at the time. That
can help manage risk and also produce significant leverage if the
shares continue to rally, though the contracts could quickly lose
value on a pullback. (See our
CSIQ is up 6.05 percent to $27.54 in afternoon trading, following
the broader industry group higher. Our
analytics tool identified short-term momentum building in the
space, and today Yingli Green Energy reported a strong quarter as
"exceptional demand from Japan and other emerging markets" pushes
up solar-panel prices.
Overall option is quadruple the daily average in CSIQ today,
according to the Heat Seeker, with calls accounting for more than
70 percent of the activity.
The opportunities in solar were cited at various times in our
webinar recently, with GT Advanced Technologies, SunPower, and
FirstSolar identified as potential beneficiaries.
SWPR also appeared on the Heat Seeker
as buyers targeted the September 45 calls and later the July 34
calls. The October 75 calls were bought in SolarCity, as well.
I owns shares in SPWR and GTAT.
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