First Solar (FSLR) reported earnings late last week. While its first-quarter net loss of $0.41 per share was slightly above estimates, revenue fell short of expectations. However, Wall Street seemed satisfied with the report, as shares are up around 1.9% since the announcement. This was likely due to management reaffirming its guidance for 2022 and noting a record backlog.
We sold our shares to avoid earnings risk, and I stand by that decision despite the stock’s advance. Things could have just as easily gone the other way.
With earnings behind us, let’s get back to selling puts to generate income and reduce our net debit on the position.
You can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $73.88
Net Debit: $17.15
Action: Sell to open the FSLR May Week One (5/6) 70 Put for around $0.62, but adjust as needed to sell a put today
New Net Debit: $16.53