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November 15, 2012  Thu 11:05 AM CT

TSL: SEE CHART GET CHAIN FIND STRATEGIES
Shares of Trina Solar have fallen to another all-time low, and put trading tops the action in the name.

More than 4,800 TSL options trade, compared to a daily average of 735 over the last month, and almost all of today's activity is in one trade. optionMONSTER's systems show that a trader sold 1,500 March 3 puts for $0.77 against open interest of 2,48 and bought 3,000 March  2 puts for the ask price of $0.30, with no open interest at that strike.

The trade could be a ratio spread aimed at profiting if TSL is above $3 or continues to collapse. It could also well be a roll lower, with the trader selling in-the-money puts and buying twice as many at the lower strike while taking some money off the table in the process. (See our Education section)

TSL is down 6.46 percent to $2.46, just above the session low of $2.42. The manufacturer of solar products has fallen sharply in the last week from above $4. Shares were above $7 in late June at above $10 in February.
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Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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