First Solar (FSLR) has soared more than 35% in the past week following the company’s announcement of a surprise Q2 profit and a breakthrough in the Senate on a $369 billion climate spending package that includes large tax credits for clean energy, such as solar.
I am recommending we roll our put to a higher strike while keeping the expiration date the same to generate more income and reduce our net debit on the position.
You can enter the second leg of 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: $100.05
Net Debit: $10.61
- Buy to close the FSLR Aug Week Two (8/12) 87 Put for around $0.81
- Sell to open the FSLR Aug Week Two (8/12) 92 Put for around $1.53
- Set initial credit limit at $0.72, but adjust as needed to roll today
New Net Debit: $9.89