Signs Of A Top For First Solar



This morning we noted (via Green Stocks) that First Solar’s (FSLR) CFO, Jens Meyerhoff, dumped $3 million worth of shares last Friday. We were curious to find out what happened, so we called up First Solar.

According to a company rep he just wanted to diversify, it’s a small portion of his overall company shares and he’s got no plans on quitting. Alright, then.

No word on whether or not he smelled a top and tried to cash out. If that was the case he missed by a bit. As you can see in the chart above, he sold while the stock was on fire but it had more room to climb. It topped $200 a share overnight, but it’s back down a little today.

Meyerhoff’s not the only one who might be thinking the stock is hitting highs. 

Schaeffer’s Daily Option Blog: According to data from, the alternative-energy issue saw more than 17,500 puts cross the tape, compared to its average daily volume of fewer than 8,700 contracts. The build-up of bearish bets fuelled the equity’s Schaeffer’s put/call open interest ratio (SOIR) higher overnight, from 1.41 to 1.46, in the 97th annual percentile. In other words, short-term speculators have been more leery of FSLR only 3% of the time during the past year. However, the surge in scepticism wasn’t just a one-day wonder; as Elizabeth Harrow recently noted, near-term put open interest on FSLR has escalated dramatically since April 30.

In other words, First Solar has had such a runup that investors who own the stock may be buying puts as protection in case the stock falls precipitously, or, speculators are in there thinking the price has run up too much and they’re betting on it falling.

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