LDK Solar Co. Ltd. (LDK) –
The prospects look brighter for solar panel maker according to its
president who told Taiwanese electronics website DigiTimes that the
industry hit its low point in the first quarter. LDK's chief also told
the website not only to expect a second-quarter rebound but that the
industry was not playing out investors' currently pessimistic scenario.
Adding fuel to a rally across shares in the renewable energy sector was
confirmation from Germany that its last nuclear power station would
close in 2022. One investor struck to make a bullish play on LDK by
writing put options expiring in less than three weeks raking in a total
premium of $145,000. The investor sold 5,000 put options for 29 cents
apiece guaranteeing to take delivery of 50,000 shares at $7.00 each by
June 17. Just two weeks ago LDK's share price meaningfully breached
$10.00 for the first time since September on fears for earnings across
the industry. Last week they traded as low as $6.14 before today's rally
took hold and kicked them back to as high as $7.24. Currently the
speculative strategy is an at-the-money investment, but by taking in the
29 cent premium the investor is effectively lowering his buy price to
$6.71 and presumably is banking on June 7 earnings to help vilify his
stance.
BP Plc (BP) –
Shares in Europe's second-largest oil company have performed strongly
in recent weeks, shrugging off a disastrous outcome with its Russian
subsidiary that left it floundering without an expansion policy.
Nevertheless investors have warmed to recent news of possibly less
financial liability resulting from the Gulf of Mexico spillage one year
ago. Shares reached the highest since May 2 on Tuesday in early going
although have pared gains throughout the morning. One investor struck
early to either defend against a reversal in the recent recovery or
perhaps is wagering that the gains won't stick. An investor paid 17
cents to buy around 10,000 put options on the oil-giant targeting the
$44.00 strike while shares traded at $46.53. With the stock back at
$46.05 the puts are currently playing out and have currently added five
cents. The company earlier announced a reduction in output from the
North Sea Forties field for the next two months, while boosting its
forecast by 16% for output during September.