Boston, MA, 07/16/2013 (nysepost) - Canadian Solar Inc. (NASDAQ:CSIQ), a solar products manufacturer, has recently been skyrocketing in share prices to gain a whopping 224% for the last year. It has outperformed the S&P 500 Index by around 172 percentage points during the last three months. However, the buyers of put options on the stock are betting that the company will make a turnaround that will hit the markets highly on the downside. It is expected that the share price of CSIQ will fall to a breakeven level of $9.62, which is the current strike price of put options less the premium paid.
If the stock price does not fall by 14%, then all the buyers of the put options will lose the premium. The put activity in CSIQ stock has recently been soaring to more than five times the normal level. This increase in activity of put options on the stock sent alarms to the traders. It is thereby expected that the share price of this solar products manufacturer might fall in the recent future.
With the spread for the intraday from a low price of $11.77 to a high price of $14.08, the share price of the Canadian Solar Inc. (NASDAQ:CSIQ) closed for the day at $13.93 recording an increase of 20.61%. The low price range of Canadian Solar for the last 52 weeks was $1.95 up to a high price of $14.08. The stock opened at the price of $11.90 on Monday with a market capitalization of $602.37 million and 43.24 million outstanding shares. With an institutional ownership of 16%, the trading volume for the day of Canadian Solar was 9.30 million and the average trading volume stood at 3.37 million shares.