Yingli Green Energy shot 8.2% higher today to close at $5.17, bringing its year-to-date gains to 120%. While the shares charged north, option traders picked up calls at a 37% mark-up to the average daily rate. These contracts more than quadrupled the number of puts traded, with over one-third of the day's calls crossing at the January 2014 5 strike. The majority of contracts traded at this strike went off at the ask price, and implied volatility spiked, suggesting long calls were bought to open here.
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Yingli Green Energy gained 8%, largely in sympathy with peer Trina's announcement. It's only natural to lump Yingli and other Chinese solar stocks together, especially given China's recent initiatives to develop as much as 35 gigawatts of solar generation capacity in the coming years. Yet as Fool solar expert Travis Hoium observed this morning, Yingli has a lot more debt than Trina and other major players in the Chinese solar space. |
