Straight to the point, looks like FSLR is forming a Bearish RSI divergence (where price is making higher highs, and RSI indicator is making lower highs). Additionally, RSI is also at 71.45 which is somewhat high (overbought).
Unless we break the marked white support trend line on the chart, the price should start making a downward movement to the support areas (143.50, 118.82).
Trade Ideas: FSLR - Long $170 Put 12/02 - $5.15 FSLR - Long $140 Put 12/16 - $0.97
I've given two options. (In The Money or Out The Money) based on your risk level.
This is not a financial advise. Please do your research before making the trade. Trade only if you agree with the idea.
Good Luck!
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Seems like we're heading down now. First stop looks like 160 and then 157 unless the market gets a pump. FSLR was also downgraded this morning by JP Morgan.
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160.14 is the key support here. FSLR needs to break that in order to continue the downward movement. So far the play looks good.
If you had entered the Long $170 Put 12/02 expiration at $5.15 it is now at $8.80 which is 70% Profit. Feel free to exit here for that leg.
I'm still holding the Long $140 Put 12/16 and let it play out.
I got some Jan 140 puts will avg down unless we close above 175
MoneyChartz
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@Gxtenkss, That sounds like a good idea to me. It did bounce around the 160 area with the overall market bouncing yesterday, but I'm looking for a consolidation on the market so hoping FSLR will react to it.
murrs700
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I went out to the March $115 and June 135s. Underwater on the March play and have averaging down for about two months. Once that trade gets back to BE I'll prob cash out for Septembers, but that time the June's should be fairly happy. With a stock like this I strongly belive the gap will close between $75 and $87, but I am trading for a PT at $90 just for some additional risk reduction. When it hits that, I might make some small plays to let the gap close, but assuming the trade works out to that level I'll likely move on. The constant media storm and analyst upgrades making shorting solar a bit annoying.