After a March rally, First Solar (FSLR) is falling again as the risk-on trade once again switched off this month. Our call is on track to expire worthless. The company is scheduled to report earnings on April 28. We will exit the position before then and re-enter following the announcement.
Mosaic Company (MOS) has sold off sharply since we sold a put this week on no company-specific news. Competitor CF Industries (CF) recently warned of shipping delays of its nitrogen fertilizers due to a labor shortage and operational issues hurting railroad Union Pacific’s (UNP) ability to meet shipping demand. Perhaps that is weighing on Mosaic as well.
I expect MOS to rebound. Let’s roll our put out one week to buy ourselves some time and generate more income.
FSLR Apr Week Four (4/22) 80 Call
Current Stock Price: $72.79
Cost Basis: $89.45
Action: Watch call expire worthless
MOS Apr Week Four (4/22) 74 Put
Current Stock Price: $67.57
Cash in Hand: $0.62
- Buy to close the MOS Apr Week Four (4/22) 74 Put for around $6.37
- Sell to open the MOS Apr Week Five (4/29) 74 Put for around $6.95
- Set initial credit limit at $0.58, but adjust as needed to roll today
New Cash in Hand: $1.20