Wednesday, July 3, 2013

I got Solar

The Solar industry has the power to be a big mover when it goes in your favor. So if you can manage the trade properly and have good enough timing that will play to your favor.

I believe the upside is tremendous in FSLR and STP and SPWR and others. I think they could all at least double in price with significantly more potential in a short amount of time IF* they can get enough buying pressure to get them into and out of the volume pocket. I don't know the odds exactly, but I know that you don't need that good of odds if you manage your money properly.

Some of these are also perfect for my "nickler" strategy that I may discuss later.


To summarize the "nickler" for now, you bet on a 30+% move and go 10-15% out of the money with your calls in only 30-65 days or so and have the potential to "make dollars out of nickles" if you are right. You probably will not be right but when you are it pays for the losses many, many, many times over (in theory). Unfortunately, when the contract size is small, you pay per contract much more as a percentage of each contract if it's a flat rate structure. This must be factored into the equation.

Disclaimer: I am long either the stock and/or the underlying of FSLR and STP at the time of this post.

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