First Solar (FSLR) sold off sharply following the company’s earnings report. Although earnings were well above expectations, revenue was a bit light and management’s forecast of $2.4 billion to $2.6 billion in revenue for 2022 was below analyst estimates for $2.76 billion.
This outcome is precisely why we bought a protective put yesterday. That put is now quite profitable, and I am recommending we close it. The profit from that put will reduce our cost basis on the covered call position, which we will continue to aggressively manage back toward breakeven.
Note: No action is needed on the FSLR Mar Monthly (3/18) 77.50 Call at this time.
Current Stock Price: $66.86
Cost Basis: $96.13
Action: Sell to close the FSLR Mar Week One (3/4) 70 Put for around $3.90, but adjust as needed to close today
New Cost Basis: $92.23