Shares of SolarCity recently lost some 35 percent from high to low, but that doesn't concern Carter Worth. In fact, the chief market technician at Sterne Agee says that that's just the sign you need to buy the stock.
Worth points out that the stock has lost 35 percent twice before—from May 2013 to June 2013, and from the beginning of November to the end of the month. And both times, the 35 percent decline marked the perfect time to buy.
Now the stock has lost 35 percent once more, and this decline "is exactly the same, by our work, as the other two times," Worth said on Friday's episode of "Options Action."
"Take advantage of this weakness," Worth advises.
To burnish his point, Worth provided a chart of the stock compared with its 150-day moving average.