Shares of ReneSola (SOL) are trading lower on the session by 4.64%, at $1.44. The stock has been moving solidly higher since the beginning of August, gaining 48% in just a few weeks, but has recently topped out and broken down.
Shares are currently testing the 50-day moving average.
One trader is buying protection on the name today, voicing the opinion that shares of ReneSola have the potential to continue much lower. A short while ago, the January 2013 $1 put was purchased 1,000 times, on or near the offer, for $0.17-0.20.
Given the current open interest of 24 contracts, this is clearly new positioning. The strike is now bid $0.15, at $0.20.
Put volume is running at 372x normal volume with 1,110 contracts traded. Over 90% of all puts traded have been purchases on the offer.
ReneSola Ltd is a global manufacturer of solar wafers and producer of solar power products based in the People’s Republic of China.