JA Solar Holdings Remains Clouded by Pessimism (JASO)

Shares of JA Solar Holdings Co., Ltd.

have bucked the broad-market trend lower, soaring to a new annual high of $7.92 – in a neighborhood the solar concern hasn't explored since October 2008. Nevertheless, it appears the options crowd is growing more stubborn in its skeptical view of the stock, as evidenced by the accelerated affinity for long puts lately. By Monday's closing bell, JASO had seen roughly 7,100 puts cross the tape – about seven times its predicted single-session volume of fewer than 1,000 puts. More than three-quarters of the action centered on the near-the-money November 7 put, which saw about 5,500 contracts exchanged – 76% of which traded at the ask price, suggesting they were bought. Plus, all of the puts translated into fresh open interest overnight, confirming our suspicions of newly-purchased pessimistic positions.

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