From Schaeffer's Research:
Option activity is heating up today on First Solar, Inc. (FSLR) and Green Mountain Coffee Roasters Inc. (GMCR). While the former stock attracted a neutral-to-bullish spread in the wake of a downbeat analyst note, the latter security has seen call volume skyrocket to nearly six times the norm.
First up, FSLR is in focus after the stock was started at "underperform" by Needham. In a note to clients, analyst Y. Edwin Mok cited concerns about narrowing margins and high expectations among investors. The stock is down nearly 3% this afternoon as a result, with FSLR extending a short-term slide below its 10-day and 20-day moving averages.
As a result of the security's bout of weakness, one bullish bettor is taking a cautious approach on FSLR. Earlier today, the trader opened a short put spread by simultaneously buying 100 contracts of the June 100 put, and selling 100 contracts of the June 105 put. The maximum potential profit is limited to the initial net credit of $1.57, and the trader can pocket this reward if FSLR finishes at or above $105 upon June expiration....