Options Betting Against First Solar (FSLR, TAN)

First Solar, Inc. (NASDAQ: FSLR) is trading as though investors are worried that it too could fall the way of Energy Conversion Devices, even though the comparison seems very much too premature and far too extreme.  Not only has the stock taken a hit today, the stock options bets against this company are looking uglier and uglier.  If you go beyond the February 2012 monthly expirations into March (remember, Feb. options expire this Friday) and take a look at the puts:

• In the $32.00 PUTS there have been some 12,022 put option contracts traded versus a prior open interest of only 1,528 contracts.
• In the $39.00 PUTS there have been some 12,391 put option contracts traded versus a prior open interest of only 1,034 contracts.

The Guggenheim Solar ETF (NYSE: TAN), which is comprised by well over 10% with First Solar shares, is down 6.7% at $3.18.  Shares of First Solar are now down over 6% at $39.10 and we have already seen more than a full day’s trading volume in the stock.

JON C. OGG