Options Trader Calls Floor on First Solar Stock
Short-term contracts are popular on FSLR
A few stocks seeing unusual options trading today are First Solar, Inc. (NASDAQ:FSLR), Hexo Corp (NYSEAMERICAN:HEXO), and Tyson Foods, Inc. (NYSE:TSN). Let's see how speculators are approaching the shares of FSLR, HEXO, and TSN.
Solar stocks are gaining today after trade authorities made some solar panels exempt from tariffs. For First Solar stock, that means a 4.3% gain to trade at $62.47, and options volume is pacing to top the daily average. The most popular option is the weekly 6/14 59.50-strike put, which has seen sell-to-open activity, meaning these traders expect FSLR to hold above $60 through tomorrow's close, when the contracts expire.
The bullish bias has been building behind the solar shares for some time now, including a major J.P. Morgan Securities note a month ago. The setup has nearly stayed the same in the options pits, too, where the equity's 10-day call/put volume ratio of 3.69 ranks in the 83rd annual percentile at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX)
Turning to HEXO, the cannabis stock is down 8% today at $5.93 after disappointing quarterly results, overshadowing news that the company's affiliate Hexo Med has obtained a medical marijuana license for Europe. This move has the stock holding just above its 200-day moving average.
In the options pits, calls were popular coming into today, with more than 10 long calls crossing for every put in the last two weeks at the ISE, CBOE, and PHLX. Today, some traders could be closing their positions during the sell-off, with the November 10 call coming in as the most popular.
Finally, TSN call options are very popular today, as we highlighted in our midday newsletter. So far, 16,000 have traded, compared to a daily average of just 3,770. The June 84 and 87.50 calls remain hot, where sell-to-open activity could be taking place, while short-term bulls could be picking up the weekly 6/14 83.50-strike call. The accelerated trading comes after Tyson revealed its new plant-based protein products, which has the stock up 0.7% at $82.50.