New First Solar Options Offer Attractive Opportunities for Investors
Investors in First Solar Inc (Symbol: FSLR) have new options available today, set to expire in March 2026. With 382 days remaining until expiration, these contracts provide a chance for options sellers to earn higher premiums compared to those with shorter expiration periods. Utilizing our YieldBoost formula, Stock Options Channel has analyzed the FSLR options chain and identified one put and one call contract that stand out.
Put Contract Insights
The put contract at the $125.00 strike price currently has a bid of $22.75. If an investor sells-to-open this contract, they agree to buy the stock at $125.00 while also collecting the premium, lowering their effective cost basis to $102.25 (before broker commissions). For those already looking to purchase FSLR shares, this represents a viable alternative to the current market price of $133.39 per share.
This $125.00 strike price is approximately 6% lower than First Solar’s current trading price, indicating it is out-of-the-money by that margin. Current analytical indicators, including greeks and implied greeks, suggest a 67% chance that the put contract could expire worthless. Stock Options Channel will track and update these odds over time, publishing a chart on the contract detail page. Should the contract expire worthless, the premium could yield an 18.20% return based on the cash commitment, translating to 17.39% annualized—a figure we label as the YieldBoost.
Historical Trading Data
Below is a chart illustrating the trailing twelve-month trading history for First Solar Inc, indicating where the $125.00 strike price is positioned relative to this history:
Call Contract Opportunities
Shifting to the calls side, the call contract at the $145.00 strike price is currently bid at $25.80. An investor buying shares of FSLR at the current price of $133.39 per share and selling-to-open this call as a “covered call” would commit to selling at $145.00. Taking into account the premium collected, this could result in a total return of 28.05% if the stock is called away at the March 2026 expiration, excluding any dividends (before commissions). However, investors should note that this strategy could cap upside potential if FSLR shares appreciate significantly.
Below is the chart showing FSLR’s trailing twelve-month trading history, with the $145.00 strike highlighted:
The $145.00 strike price reflects a roughly 9% premium over the stock’s current trading price. Thus, there is a possibility the covered call contract may expire worthless, allowing the investor to retain both the shares and the collected premium. Current data suggests a 43% chance of this happening. Stock Options Channel will also monitor these odds, updating a chart of historical data along with this contract. If the call expires worthless, the premium represents a 19.34% enhancement on returns, or 18.48% annualized—another instance of our YieldBoost concept.
Volatility Overview
The implied volatility for the put contract stands at 56%, while the call contract is at 55%. In contrast, we calculate the actual trailing twelve-month volatility—factoring in the last 249 trading days and today’s price of $133.39—to be 54%. For more insights into put and call options worth considering, visit StockOptionsChannel.com.
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Also see:
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- BLDP market cap history
- Institutional Holders of IYZ
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
