SunPower (NASDAQ: SPWR), a manufacturer of solar systems, is recently down $3.30 to $79.70 in pre-open trading.
Calyon says: "The German solar feed-in tariff (FIT) is under fire, as lawmakers are considering an accelerated digression that would reduce rates 25% by 2010 versus 15% under current law."
SPWR over all option implied volatility of 60 is below its 26-week average of 70 according to Track Data, suggesting decreasing risk. SPWR puts are priced higher than calls because SPWR is difficult to borrow.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com










