FuelCell Energy Inc. (FCEL) together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants and I think that this sector will do very well this year. However, the stock has doubled in the last 2 weeks. I would be more inclined to buy a pullback 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 do not want to be buying inflated front month volatility so my trade will be:
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