First Solar Inc. (FSLR) 7/29/10 PriceWatch Alert Support At Around $134.00

Posted: Thursday, July 29, 2010 8:27 AM EDT
By: Market Intelligence Center Staff

First Solar Inc. (NASDAQ: FSLR) closed yesterday at $137.04. So far the stock has hit a 52-week low of $98.71 and 52-week high of $175.88. First Solar stock has been showing support around 134.00 and resistance in the 140.44 range. Technical indicators for the stock are Bullish and S&P gives FSLR a neutral 3 STAR (out of 5) hold rating. FSLR appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a Sep '10 140 covered call for a net debit in the $128.84 area. That is also the break even stock price for this trade. This covered call has a 51 day duration, provides 5.98% downside protection and an 8.66% assigned return rate for a 61.99% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the FSLR Jan '12 55 Call and selling the Sep '10 140 call for a $77.10 debit. The trade has a 51 day life and would provide 3.60% downside protection and a 10.25% assigned return rate for a 73.00% annualized return rate (for comparison purposes only). First Solar does not pay dividends at this time. [THA-Seven Summits Research]