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Thursday, December 26, 2024

Top Trade Alert – Jan 27 2023 – Sunpower (SPWR)

SPWR has been picked here before but it's cheap again and it's also our Stock of the Decade (stock most likely to return 10x) - and the decade is still young. 

We started playing them at $5 so you've missed the first 200% gain but still a long way to go at $16.70 - $25 will only be halfway to goal for us:  

SPWR Jan 27 2023.png

  • Sell 10 SPWR 2025 $20 puts for $7 ($7,000)
  • Buy 20 SPWR 2025 $10 calls for $9.20 ($18,400)
  • Sell 20 SPWR 2025 $20 calls for $4.85 ($9,700)

That’s net $1,700 on the $20,000 spread with $18,300 (1,076%) upside potential at $20. We’re aggressive on the short puts but $20 is not very far away. Revenue growth is around 20% and solar is booming and SPWR is small enough were a few big contracts will really move the needle.

 

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