Selling FSLR puts for income.
First Solar Inc. (FSLR) is manufactures solar panels, modules and systems for utility-scale solar energy projects.
The “Inflation Reduction Act” will spend hundreds of billions on energy and climate change programs — all helping to drive more demand for solar power.
Shares of FSLR traded sharply higher on the news and could have much farther to go. As this bill is passed into law and more utility-scale projects are built, FSLR’s profits should grow.
By selling the September $92.50 puts near $4.00, we’re able to collect an annualized yield near 35%, while also giving us roughly $7.25 per share in cushion between the current market price for FSLR and our strike price.
- Sell (to open) 1 FSLR September 16th $92.50 put
- Limit: $4.00 or more
- The new position will represent roughly 10.6% of our model.
~~~~~~~~~~ - 15:35 Executed
- Sold 1 FSLR September 16th $92.50 put @ $4.05