Canadian Solar Inc. (CSIQ)
Recommendation
The $40 put would be a good trade to the retraction of the stock. The price has followed the 200 day EMA fairly consistently. With the retracement at $41.50 the March $41 put at $4.80 is a little expensive but is well priced to be a good short if the stock continues to trend higher. You can sell the put and collect the premium of $4.80 compared to the $40 call at $4.00. The call has already 200+ contracts in volume, and over 1000+ contract interest. For this particular trade I would do a quick short by purchasing the put or selling the call. Taking the profits and purchasing more of the March $37 call at (currently) $6.70 which would most likely be in the $5.00 range.
Recommendation
The $40 put would be a good trade to the retraction of the stock. The price has followed the 200 day EMA fairly consistently. With the retracement at $41.50 the March $41 put at $4.80 is a little expensive but is well priced to be a good short if the stock continues to trend higher. You can sell the put and collect the premium of $4.80 compared to the $40 call at $4.00. The call has already 200+ contracts in volume, and over 1000+ contract interest. For this particular trade I would do a quick short by purchasing the put or selling the call. Taking the profits and purchasing more of the March $37 call at (currently) $6.70 which would most likely be in the $5.00 range.