Option Investor

ALERT regarding SOLF

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I thought I would drop subscribers a little heads up regarding the recent move on SOLF, which has suddenly caught my attention as it jumps on the WATCH list for the first time with 3 days reamining to expiration. The stock has come from the high $12 price area to $16.50 and we still have 3 days remaining until expiration. Our short May 17.5 call has gone froom $0.05 to $0.20 -$0.25 Bid/Ask today

In addition the volume today has tripled over average volume and the stock will report earnings on May 21st ( after the May cycle has gone off the board, one reason I don't recommend holding over earnings reports.) My concern is the activity today of the other large Solar companies ( see below ) and the potential for follow through tomorrow of SOLF

CSIQ $43.88 + $9.60 (9.60%)
FLR $191 + $25.45
JASO $23.70 +1.60 ( 7.24%)

SOLF $16.45 + $1.49

CSIQ had good earnings and there are rumors that SOLF may follow suit ( even with the current concerns of high margins.)

My advice is too watch this one and be prepared to act if this action follows through tomorrow to the extent it has played out today. Sometimes you may not be in a position to act if you are at work or some other venue.

So keep a heads up. Hopefully we get a little profit taking tomorrow. Also check the afterhours as well for any surprises.

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