Traders are betting that shares of SunPower are headed higher even after putting in a new low last week.
The solar technology company closed yesterday off 0.12 percent to $20.15 and fell another 1.34 percent in after-hours trading. Shares hit a 52-week low of $18.92 on Feb. 10, dropping from above $33 in late October after its last quarterly report.
SunPower will release its next earnings report before the March expiration, and yesterday we saw a bullish bet ahead of those results.
show that one trader bought 5,000 of the March 21 calls for $1.35 yesterday and, seconds later, sold 5,000 of the March 24 calls for $0.40. The action at both strikes was well above open interest.
This bull call spread will make $2.05 if shares are above $24 at expiration and risks $0.95 if the stock is below $21. SunPower was trading above that $24 level just a month ago.
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Najarian owns SPWRA calls.
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of .