First Solar (FSLR) is up nearly 25% in the past two days following two big announcements.
First, there was a breakthrough in the Senate on a $369 billion climate spending package that includes large tax credits for clean energy, such as solar.
Second, the company reported a surprise Q2 profit of $0.52 per share on $621 million in revenue. Analysts were expecting a net loss of $0.44 per share on revenue of $607 million. Bookings and backlog were also strong.
You can enter today’s trades 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.
Finally, note that the option chains are somewhat illiquid, so you may need to work your limit orders.
Current Stock Price: $95.49
Net Debit: $11.84
Action: Sell to open the FSLR Aug Week Two (8/12) 87 Put for around $1.23, but adjust as needed to sell a put today
New Net Debit: $10.61