FSLR (FirstSolar) has been on my radar this week as the stock went from $61 in mid-July to nearly $140. Is this a serious speculation or the demand for solar panels have really skyrocketed in the past 1.5 months? I get that the high energy prices, especially in Europe, are really squeezing a lot of people but to have your company valuation doubling in 1.5 months by roughly $7bn is a bit stinky for me.
I was very tempted to sell naked calls against it, which would have profited if the price came down but the insane rollercoaster ride back in 2008 gave me cold feet.
So what's my trade for today?
With the volatility dropping further I was able to close another couple of trades enabling me to reduce my exposure further. Given that we had a decent bounce back this week despite the tough macro outlook I continue piling up on short calls. Today I sold #LVS (#LasVegasSands) Oct $43 call. There is a possibility that it will go a bit further up but I am definitely bearish on companies that suffer when people suffer. LVS is a casino stock so I don't see how they would be able to flourish in the short term.
LVS Daily Chart
Trade Type: Short Call
Expiry: 14 Oct
IV Rank: 26.2
Cap Req: $380
Annualised Prof at Expiry: 128%
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