I am a fan of Solar stocks especially when they are around the $2 mark. This could be because I missed the SOLR, SOL, YGE etc... rally. However, when ESLR got an upgrade and a $5 price target my shark senses were perked. I had to investigate a smart way to get into ESLR. Especially since the target price would score a double... So I know you don't know me yet but I am an options trader and when I want to buy a stock for a long holding, especially a speculative one I look at selling PUTS to take advantage of the market environment and pressure on the stock to pick up the stock at a reduced price. Now with ESLR I SOLD July 2.50 puts and September 2.50 puts today. I should either keep $2100 dollars if ESLR is above 2.50 next Friday and in Sept or start picking up my long shares for under $2 courtesy of the premiums and volitility. .55 for July and .80 for September... 20 contracts each. Here is an article from Schaeffer's research, I like it because it's bullish with a realistic warning that there is always potential for selling pressure. Downside risk, the stocks' 52-week low was a buck and with the premiums I received is well worth any risk of touching lows as this is a long play.
Now if Solar would break away from its Oil correlation that would be great. We still need to pursue alternative energy!
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