Fast profits in Yingli Green Energy

January 3, 2014 by  
Filed under Green Energy News

Yingli Green Energy rallied on positive analyst comments, and
option traders were all over the move.

Our Heat Seeker monitoring program detected heavy buying in the
March 6 calls for $0.65 to $0.80 early in the session. The stock
pushed higher and those options would inflate to as much as
$1.14. More than 8,900 contracts traded against previous open
interest of 4,015, which means that new long positions were

Calls lock in the price where a stock can be purchased, letting
investors cheaply position for a rally. Their low cost can also
result in significant leverage on a percentage basis, which is
precisely what happened yesterday. (See our


section for more.)

YGE was up about 10 percent when the calls hit, but then kept
rallying and ended the day higer by 24 to $6.28. The rally came
after Deutsche Bank praised the company’s joint venture with
Datong Coal Mine Group and said channel checks confirmed strong

In another large trade, an investor rolled a bullish position in
6,000 of the January 5 calls to the January 6 calls, collecting a
credit of $0.65 in the process.

Overall option volume was 15 times greater than average in the
session, with calls accounting for three-quarters of the total.

(A version of this post appeared on

InsideOptions Pro


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