$FSLR After Hours Earnings Madness

Last night we had earnings in a popular play on StockTwits, $FSLR.   First Solar posted $2.11 share earnings, beating analysts’ estimates of $1.66.  Initially, the stock popped on this beat, moving from a closing price of $173 up to around $190 after hours.

Then disaster struck.

On the conference call, First Solar did not change guidance for the next quarter, and the stock proceeded to plummet from 190 to around 155, where it opened this morning.

That said, its no surprise the stream was humming last night and this morning with reactions to the wild movement in the stock.

The initial pop led to some “premature congratulation” by many on the stream, including our own Howard Lindzon.  Around 4:35, @TexasOil and @stotrader served as the canaries in the $FSLR coalmine, bringing attention to the onset of the drop.

Two StockTwits Recommended tweeters, @smbcapital & @charlesamadeus both posted great summaries highlighting the action and their thought process trading $FSLR after hours.

Below is a chart highlighting the after hours action (from SMB Capital):

Although the post-earnings action in $FSLR caught many by surprise, there were some who played it like a fiddle – most notably our resident options maven, @stevenplace.

While many were betting on big moves post-earnings, Steven gave his subs an iron condor trade that would profit from the stock staying in a range from $138 to $192 by expiration.  At the time this post is being written, $FSLR is trading at $155, which is well within the range.  While there is still some time to go until expiration, thus far the trade looks good.  For those who want some additional color on the trade, Steven posted a review of his trade on his blog for all to see.

What will today bring with $FSLR?  @ventursumsavant wonders if it will pull a $GMCR – gap down then trade higher.  Time will tell


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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