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December 14, 2012  Fri 12:20 PM CT

FSLR: SEE CHART GET CHAIN FIND STRATEGIES
Shares of First Solar are trading at nine-month highbut today's option activity is focused on unusually heavy put volume.

optionMONSTER's tracking systems detected the sale of 5,000 January 30 puts for the bid price of $2 against open interest of more than 10,000. At the same time, the trader bought 5,000 January 33 puts for $3.54 in volume that was well above open interest of just 628, indicating a new position.

This could be a roll, with a trader moving the puts to a higher strike as shares rise, or it could be a new vertical spread. The latter would cost the trader $1.54 to open, which is the amount at risk if shares remain above $33. (See our Education section)

FSLR is up 2.38 percent to $32.53 after hitting a $33.17 earlier today, its highest level since February. Shares of the solar-technology company fell to a low of $11.43 in early June but have been trending higher since.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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