SunPower is falling in this rising market, and the options action shows concern for further declines by the end of next week.
The solar technology company is down 2.4 percent this morning, trading at $22.80. SPWRA stock was up above $34 briefly in mid-October, but fell to $20 by the end of November.
Now the action is in the December 17.50 puts as traders are apparently snapping up contracts, the largest blocks of 2,850 for $0.05 and $0.10, according to OptionMonster's real-time tracking systems. The open interest is 985 contracts, so this is new opening positions.
These puts only have eight days until expiration and are well below the October low of $18.50. It is likely that these are bought against long stock, but they are a very odd choice for protection—especially because the $19 puts are trading for $0.10 as well.
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Suntech Power Holdings
Yingli Green Energy Holding
Chris McKhann is an analyst and writer for OptionMonster.