Quick gains for Canadian Solar bulls

It took just one session for option traders to double their money in bullish positions on Canadian Solar

Just yesterday, Investitute’s proprietary programs found that 2,000 Weekly $13.50 calls expiring on July 7 were purchased for $0.85 with shares at $14.01. Open interest in the strike was only 37 contracts before the trades occurred, showing that they were new positions.

Those calls sold for $2 this afternoon, more than doubling in value. The stock rose 10.1 percent in the same time frame, a significant gain but nowhere near the move in the options.

Long calls lock in the price where the stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

CSIQ was up 7.72 percent to $15.07 today. The company, one of the largest supplier of solar panels to the United States, rallied after President Trump spoke of the possibility of building the alternative-energy technology into a Mexican-border wall.