I’m just hoping the sun doesn’t burn out, because First Solar is where it’s at for me in 2013. This is not for the faint of heart, and frankly if playing it should be done rather conservatively. Some research on the Street has called for this company and others in the solar space to completely go to zero – bankrupt. Well, there is always a chance, right? However, I’m thinking next year won’t be the time, and I suspect a strong year for the group.
First Solar (FSLR) has been the leader on the way up and down. Recently it hit mid teens but seems to have picked up some buyers there. Since the summer the stock has been on a tear rising more than 100%. But from the beginning of the year the stock is flat – amazing when you consider the high of 50 and the low of 13 during the year (and with so much bearish commentary).
OPTION ANGLE
I am playing this one as a stock substitute. I have put on a risk/reversal, long 2014 Jan 35 call leaps and short 2014 Jan 20 put leaps. Currently this can be done for roughly 3.20, all upside beyond $38 by next year. More importantly, the trade can be managed throughout the year.
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Related stories:
Will The US Bull Market In Equities Continue in 2013? The January Barometer Offers Clues.
