Stock / Symbol: [private_monthly]First Solar / FSLR[/private_monthly]
Price at trade post: $145.90
Option Strategy: call spread
Max Risk: $825
Max Reward: $175 or 21% by Apr 2011 expiration
Profit Range: $133.25 +
Max Profit at: $135 +
Reasoning: This company is fundamentally worth $186 per share and has found support at its 200 day average. The stock can drop another 7.5% from its current level and we'll still have a successful trade. There is a 72% probability that the stock will be trading over $135 by April expiration.
Trade Details:
[private_monthly]
Buy 1 FSLR Apr11 125 Call $22.30 $2,230.00
Sell -1 FSLR Apr11 135 Call $14.05 ($1,405.00)
for a net debit of $8.25 per contract
Requirements
Cost/Proceeds $825.00
Option Requirement $0.00
Total Requirements $825.00
Estimated Commission $12.95
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Chart:
[private_monthly]
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