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Options2Wealth
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I used to run a limited partnership, boutique hedge fund in the 90s. Retired in 2000 and moved from New York City to Toronto, Canada, got married, raised a family and basically settled down. After a few years in Toronto, my wife got tired of the city’s 8 months of cold weather and insisted that... More
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  • Portfolio Update 5/21/2013 8 comments
    May 22, 2013 3:49 AM | about stocks: AAPL, CSCO, FSLRQ, JDSU, JNPR, LDK, QCOM, S, SPWR, TSL, SUNE

    Today (May 21, 2013), SPWR looked pretty strong in pre-market trading and as soon as the markets opened, the stock galloped right out of the gates and in no time was up more than $1 in early trading, going as high as $23.72, before losing steam...

    However, I was not fooled by SPWR's fake show of strength and I quickly dumped my remaining 300 June $15 contracts at an average price of $8.35. less brokerage commissions...And, as stated in my post from this morning, yesterday I sold 400 contracts of these same June $15 CALLS at an average price of $7.738

    Therefore, over the course of yesterday and today, I exited out of my 700 contracts of SPWR June $15 CALLS and these sales netted total cash of a little over $500K...

    Here are the screen shots of the sales, both from yesterday and today:

    Again, as per my plan, which was telegraphed here first, I decided to use my new cash hoard to buy WFR CALLS...Now that I have generated substantial cash over the course of the last 4+ months, I will focus more on cash preservation...therefore, on the WFR CALLS, I decided to play somewhat safe by buying January 2014 option contracts with strike prices of $6.00 and $7.00.

    I bought 1700 contracts of WFR's January 2014 $6.00 strike price at an average cost per option of $1.834 + commissions and 1000 contracts of its January 2014 $7.00 strike price at an average cost of $1.39 + commissions.

    BTW, almost all of the trades shown in the screen shots above (both SPWR and WFR options), can be attributed to my buying and selling...LOL!

    Since it is now way past my bedtime and I still need to be up bright and early before the markets open, I will call it a night and hit the sack...later, I will update the Excel spreadsheet with the most recent trades in the portfolio, and post it here.

    kp

    DISCLAIMER: All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is definitely not for the faint of heart as one's portfolio can move up, or down, anywhere between 10%-30% during a single trading day. Feel free to follow my progress here, but PLEASE do not follow my moves. However, if, in spite of all my exhortations, should you decide to do so, be advised that you, and ONLY YOU will be responsible for any losses that you may suffer...In other words, the onus is strictly on you. On the other hand, if the move(s) result in a profit for you, I am open to discussing a split. ;-)

    Disclosure: I am long LDK, SPWR, TSL, WFR.

    Themes: Options, Solar Sector Stocks: AAPL, CSCO, FSLRQ, JDSU, JNPR, LDK, QCOM, S, SPWR, TSL, SUNE
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Comments (8)
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  • Spak007
    , contributor
    Comments (19) | Send Message
     
    Great call again on SPWR retreating after hitting 23 plus! I noticed the CEO of MEMC Elect. purchased quite a few shares of his company in the open market. I decided to pick up some of the WFR Oct. $7 calls as well. Looks like we have some resistance at the $7 share price, what is your time frame on when we might break through? Also, what price do you think it could run to? Thanks in advance!
    22 May 2013, 06:20 PM Reply Like
  • 11828801
    , contributor
    Comments (25) | Send Message
     
    Hi,

     

    What's your take on the solar fall today (May 22 2013)? As per your earlier portfolio update you were positive about WFR, TSL, LDK (in the same order).
    Actually I invested (options) in all those 3, But after that UN-China meeting failure options price fell down by 12%, 64%, 76% (In the same order). So how should we react to that...
    Your view is greatly appreciated. :)
    (I started my firs trading just few weeks back..I am a beginner, So my terminology may not be correct... Sorry for that)
    Thanks,Karthik
    23 May 2013, 04:47 AM Reply Like
  • Options2Wealth
    , contributor
    Comments (97) | Send Message
     
    Author’s reply » First off, I want to make it abundantly clear that I am not a licensed broker or financial adviser and this blog is my personal space on the Internet and it's only purpose is to document my strategy(ies) and moves as I manage this public portfolio that closely mirrors my personal, real life portfolio...

     

    Also, trading options is not for the faint of heart...you mentioned that you are new at options, therefore, I hope that you are only dipping your toes with a very tiny sum and have not decided to gamble a big chunk of your investment capital on your option plays...

     

    Having said that, I would like to say that this current swoon in solar stocks is just noise and the medium to longterm health of the sector just could not be rosier...As long as your options have enough time premium, then consider this pull back to be nothing less or more than the typical roller coaster ride in the options' train...

     

    I do want to point out that as a percentage of my portfolio's net worth, my stake in TSL and LDK options is miniscule as compared to my stake in WFR and even SPWR, from which I have mostly exited except for the 100 contracts of the January 2014, $12 CALLS...

     

    Hope the above helps...

     

    Best~
    kp
    23 May 2013, 09:58 AM Reply Like
  • 11828801
    , contributor
    Comments (25) | Send Message
     
    Hi kp,

     

    1st Paragraph: Yes I know that :). And I am 100% responsible for my losses (Gains ???? ;) ). I am following you because in the initial days while learning stocks, I need to know how people analyze and how they take decisions etc.

     

    2nd Para: Yes I am just dipping my toes (barely). I started with just 5% of my portfolio to understand options world. Thank you for the concern. :)

     

    3&4 Para:Thanks for the detailed explanation. I got that.

     

    Now the stocks aside, How does UN-China meeting failure affects Solar industry OVERALL. Can we expect margins to decrease from now.. and profits to decrease etc? Just curios about this industry.
    23 May 2013, 11:10 PM Reply Like
  • Solararon
    , contributor
    Comments (10) | Send Message
     
    KP,

     

    Great call on WPL breaking the $7 resistance.
    Where do you see the price rising to if any. Do you feel it fight back to it's $15 single resistance from 2011?

     

    Also on Trina, where do you see it's strengths as opposed to other solar manufacturing stocks?
    I am in the solar industry and I know LG has been making a string push in the market. Do you see LG solar having any significant affect on their stock price this year?
    24 May 2013, 09:31 AM Reply Like
  • Options2Wealth
    , contributor
    Comments (97) | Send Message
     
    Author’s reply » As I mentioned in my response to another poster's question, I expect WFR's share price to go to $13.50 in the intermediate term 30-60 days...

     

    As for Trina and LDK, I have made relatively small bets and those bets were based on their individual candlestick chart patterns...I believe that when the dust settles from the Chinese solar implosion, these companies will not only survive, but in fact, they will thrive...kp

     

    P.S., If you don't mind my asking...what do you do in the solar industry?
    31 May 2013, 01:21 AM Reply Like
  • Solararon
    , contributor
    Comments (10) | Send Message
     
    I meant WFR not WPL in the above post.
    24 May 2013, 05:49 PM Reply Like
  • Solararon
    , contributor
    Comments (10) | Send Message
     
    Thanks KP.

     

    I have a San Diego solar sales and marketing firm called Re-Source Energy. We are focused in larger residential homes, and also project development for small commercial solar installations.

     

    I have installed a lot of residential Sunpower Panels over the last 5 years. They have a great product, but I have always been challenged by their higher equipment costs, and operational issues.

     

    Sunpower panels have always been about $.50/watt- $1.00/watt more than most other solar panels on the market. They started leasing solar to residential homeowners about 2 years ago. This really helped move the high efficiency solar SPR modules because homeowners could get them with $0 down and a low monthly payment. They took over the San Diego and Southern California market by offering the top of the line equipment at lower payments than all other lease companies in the market.

     

    Sunpower's customer service, delivery times, and payments to their installation partners started slipping significantly.

     

    I then solar my SPR stock at $7. ugh.

     

    They have since raised the lease prices over 30%. Their pricing is now in line with the other leas companies like Solar City, Clean Power Finance, and SunRun.

     

    I have never sold Trina panels, and generally I try to stay away from Chinese manufacturers because of declining quality of panels, and customer service.
    1 Jun 2013, 02:29 PM Reply Like
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