On Monday, November 21st, Canadian Solar (
CSIQ - Free Report) will release its third quarter earnings results before the bell. The company is a Zacks Rank 3 (Hold), and have a Value, Growth, and Momentum score of A.
Earlier today, Dave Bartosiak gave us two different strategies to play Canadian Solar's earnings. As usual, he gives a bearish scenario and a bullish scenario, then offers up his opinion on which he believes has the greatest likelihood of success. Please now, you have to subscribe to his service for $9.99 a month to watch this video.
His bullish trade idea was short on the December 16th $11/10 Put Spread for a Net Credit of $0.25.
This trade could make 33% if shares of CSIQ close above $11 at expiration on December 16th. On the flipside, this trade experiences a maximum loss with shares below $10. The breakeven for this trade is $10.75.
His bearish trade idea was short on the December 16th $13/15 call spread for a net credit of $0.40.
The trade could make 25% if shares of CSIQ close below $13 at expieration on December 16th. The max loss is above $1500, and breakeven is $13.40.
Canadian Solar in Focus
Canadian Solar Inc is a solar module producer. The Company offers ingots, wafers, solar cells, solar modules and other solar applications for on-grid and off-grid use to customers worldwide. The Company also designs and produces specialty solar modules and products such as solar-powered bus stop lighting; and specialty products, such as portable solar home systems and solar-powered car battery chargers. Canadian Solar has operations in North America, Europe and Asia. The company sells its products under the Canadian Solar brand name. Canadian Solar Inc is based in Kitchener, Canada.
Canadian Solar is expected to
report earnings at $0.29 a share according to the Zacks Consensus Estimate. Last quarter they beat earnings expectations by 70% at $0.68 per share, beating estimates of $0.40 a share. They have an average earnings surprise of 121.80%. Bottom Line
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