By Chris McKhann
Shares of Yingli Green Energy (YGE) are down 30 percent in the last three weeks, and option traders are selling the upside.
YGE trades $10.05, down another 2.71 percent on the morning. Shares of the solar technology company traded above $14 at the beginning of the month but are now back to support levels last approached in August.
More than 9,100 contracts have traded in the January 11 calls. The volume has been institutional in size, with big blocks selling, leading up to one print of 4.779. Almost all were sold for $0.45, with volume more than 10 times open interest.
If sold naked, the calls have a bearish bias and will profit as long as YGE is below $11.45 at expiration. The trade could also have been done against long shares, which would make it a bullish position at least back up to the strike price.
Disclosure: No position
