DailyPlay – Opening Trade (FSLR) & Closing Trade (TSLA,SCHW) – July 30, 2025

Closing Trade

• TSLA – 91% loss: Sell to Close 1 Contract (or 100% of your Contracts) Aug 08 $295/$270 Put Vertical Spreads @ $1.43 Credit. DailyPlay Portfolio:  By Closing 1 Contract, we will be collecting $143. We adjusted the short put on July 18 reducing our cost basis to $1,539 Debit. Our loss, therefore, is $1,396.
• SCHW – 59% gain: Sell to Close 1 Contract (or 100% of your Contracts) Dec 19 $75 Call @ $24.15 Credit. DailyPlay Portfolio:  By Closing 1 Contract, we will be collecting $2,415. We initially opened this contract on May 13 @ $15.18 Debit. Our gain, therefore, is $897.

FSLR Bullish Opening Trade Signal

Investment Rationale

Investment Thesis
First Solar, Inc. (FSLR) offers an attractive risk-reward setup ahead of its upcoming earnings report on July 31st. As a key player in the solar industry, FSLR is well-positioned to benefit from policy support, clean energy tailwinds, and margin expansion opportunities in utility-scale solar deployments. Investor sentiment appears to be improving following a prolonged period of consolidation, and the stock is showing early signs of technical reacceleration. With a valuation discount and strong earnings/revenue momentum relative to peers, FSLR presents a compelling near-term bullish opportunity, particularly into a catalyst event that could drive further upside.

Technical Analysis
First Solar’s current technical indicators suggest that bullish momentum is building ahead of the company’s earnings report this Thursday. The stock’s ability to remain above its 20-day, 50-day, and 200-day moving averages underscores a strong upward trend. This multi-timeframe alignment reflects a solid price structure and reinforces the prevailing bullish sentiment. Notably, the 20-day moving average has recently crossed above the 200-day, and the 50-day is on the verge of doing the same. The RSI, currently near 60, suggests there is still room for momentum to build without entering overbought territory. If First Solar delivers strong earnings, it could drive a continued rally, potentially pushing the stock above the $195 level and toward the $210 area last seen at the end of 2024.

Fundamental Analysis
FSLR’s valuation and growth metrics suggest it remains undervalued relative to industry peers, despite superior operating performance:

• Forward PE Ratio: 12.20x vs. Industry Median 29.73x
  
• Expected EPS Growth: 31.05% vs. Industry Median 17.13%
  
• Expected Revenue Growth: 18.02% vs. Industry Median 7.71%
  
• Net Margins: 29.72% vs. Industry Median 6.69%
  

The company’s net margins are particularly impressive, exceeding the industry median by over 23 percentage points—highlighting First Solar’s strong operational efficiency and profitability in a highly competitive sector.

Options Trade
The proposed trade is a bull call vertical spread: Buy to Open 1 FSLR Aug 15, 2025 180/195 Call Vertical for a net debit of $5.95, or $595.00 per spread. This structure risks $595 to target a potential $905 reward if FSLR trades at or above $195 by expiration. The strike selection captures a breakout through current resistance levels, while the short call caps gains modestly in exchange for reduced capital outlay. With 17 days to expiry and earnings serving as a near-term catalyst, this setup balances defined risk with strong directional leverage.

FSLR – Daily

Trade Details

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish Debit Spread

Details: Buy to Open 3 FSLR Aug 15 $180/$195 Call Vertical Spreads @ $5.95 Debit per Contract.

Total Risk: This trade has a max risk of $1,785 (3 Contracts x $595) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $595 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 101

Stop Loss: @ $2.98 (50% loss of premium)

View FSLR Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Tuesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View FSLR Trade