FuelCell Energy

FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants and I think that it might be the next big “Hot thing” however the stock has doubled in the last 2 weeks.  I would be more inclined to buy a pullback today, than to get long the stock here.  The stock has sold off 6 of the last 8 quarters on Earnings.  Technically the chart looks great and I think it will go higher, but I want to high implied front month volatility, so my trade:

Buy the July-March 3 Call Calendar Spread for $.60 debit
Risk: $60 per 1 lot
Reward: Unlimited if stock closes under $3 on March expiration, I will be long the July 3 Calls for $.60

Andrew Keene

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