{"id":15405,"date":"2025-06-17T12:18:13","date_gmt":"2025-06-17T16:18:13","guid":{"rendered":"https:\/\/www.mainstbeatswallst.com\/?page_id=15405"},"modified":"2025-06-17T12:18:13","modified_gmt":"2025-06-17T16:18:13","slug":"sold-1-put-on-first-solar","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=15405","title":{"rendered":"Sold 1 Put on First Solar"},"content":{"rendered":"

\ud83d\udcc9 First Solar Gaps Down \u2013 A Trade Opportunity?<\/strong><\/h4>\n

\"\"<\/a>I like to trade stocks that have experienced a large gap, especially when it\u2019s a quality name. Today, First Solar (FSLR) \u2014 a very strong stock \u2014 gapped down over $35 and is now trading around $141 as I write.<\/p>\n

Why do I like trading gapping stocks? Because the gap increases volatility<\/strong>, and volatility increases option premiums<\/strong>. That gives me a chance to collect higher premiums for short-term trades. Most large gaps are news-driven, and that\u2019s exactly what we saw this morning with FSLR.<\/p>\n

Shares of solar-power companies dropped sharply after the U.S. Senate proposed phasing out solar tax credits by 2028 as part of President Trump’s \u201cbig, beautiful bill.\u201d<\/p>\n

\ud83d\udcca Gaps Create Patterns and Opportunities<\/strong><\/h4>\n

Gapping stocks often follow technical patterns, such as: Gap and go<\/strong>: continues in the direction of the gap. Or, Gap fill<\/strong>: reverses and closes the gap during the day.<\/p>\n

In FSLR\u2019s case, I believe this move was reactionary and exaggerated. The stock closed yesterday at $175.25, so this $35 drop seemed overdone. Often when that\u2019s the case, the gap partially or fully fills. That seems to be happening already \u2014 I sold the Put when the stock was at $140.50, and as I write, it’s trading around $145.<\/p>\n

Risk Factor: 2 (Low)<\/strong><\/h4>\n

Sold to Open<\/strong><\/em>
1 FSLR 6\/20\/25 $135 Put @ $2.25 \u2192 +$225<\/strong>
Premium Collected: $225<\/strong>
Stock price at entry: $140.50<\/strong>
<\/h4>\n

My hope is that the stock continues to rebound and the Put expires worthless \u2014 that\u2019s my preferred outcome. As with most of my trades, I\u2019m in it for the premium.<\/p>\n

Gaps may seem risky at first glance, but with the right stock, a clear catalyst, and proper risk management, they can be great short-term opportunities. I\u2019ll continue to monitor FSLR closely as the week unfolds.<\/p>\n

If the stock is put to me at $135, I\u2019m comfortable owning it \u2014 and I\u2019ll look to sell a covered Call to collect additional premium. That\u2019s part of my overall strategy: use volatility to my advantage, whether I’m trading options or managing a position that gets assigned.<\/p>\n

 <\/p>\n

\ud83d\udcc8Successful trading,<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n

\n

<\/h4>\n","protected":false},"excerpt":{"rendered":"

\ud83d\udcc9 First Solar Gaps Down \u2013 A Trade Opportunity? I like to trade stocks that have experienced a large gap, especially when it\u2019s a quality name. Today, First Solar (FSLR) \u2014 a very strong stock \u2014 gapped down over $35 and is now trading around $141 as I write. Why do I like trading gapping […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-15405","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-40t","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/15405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15405"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/15405\/revisions"}],"predecessor-version":[{"id":15406,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/15405\/revisions\/15406"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}