LDK Solar Up and Away

LDK Solar had a nice bump up 20% today.  They have plans to sell a 15% ownership stake in its 15,000 metric ton (MT) annualized capacity polysilicon plant in Xinyu City.  China. Jiangxi International Trust and Investment Co., Ltd. has agreed to purchase this interest for approximately RMB1.5 billion (equivalent to approximately US$219 million).  The cash infusion was one factor that seemed to help their stock price for the day.  There were several entry opportunities for a day trade as this only kept going up today.  Instead of buying LONG I decided to sell several $7 PUT options hoping to enter on the lunch time pull back, but LDK kept going up.  Options expire in 2 days so this play wasn’t the best, but there’s no downside in it which is what we’re looking for.

LDK Solar 2009-11-18

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