First Solar (FSLR) hit a new 52-week high above $140 yesterday despite the brutal sell-off in the broader market after the release of the August consumer price index. It continues to benefit from positive sentiment following the passage of the major climate change bill.
While shares pulled back below $136 today, they remain well above our put’s strike price. I am recommending we roll out two weeks 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: $135.54
Net Debit: $4.41
- Buy to close the FSLR Sep Monthly (9/16) 125 Put for around $0.20
- Sell to open the FSLR Sep Week Five (9/30) 125 Put for around $2.39
- Set initial credit limit at $2.19, but adjust as needed to roll today
New Net Debit: $2.22