First Solar (FSLR) is emerging as a potential beneficiary of the energy policy shift anticipated under the Trump administration. As President-elect Donald Trump prepares to take office, his focus on boosting the U.S. energy industry, particularly through oil and gas drilling, could inadvertently support alternative energy players like First Solar. Anne-Marie Baiynd, a market strategist, suggests that the overall demand for energy is robust enough to accommodate solar energy alongside traditional sources like nuclear and fossil fuels.

Baiynd recommends a strategic approach for investors looking to capitalize on First Solar's potential growth. She proposes using a layered options strategy, starting with a cash-secured short put, which allows traders to earn premiums while setting aside cash to purchase shares if the stock price falls. This can evolve into a bull put spread by buying a lower strike put, capping potential losses. To further enhance returns, traders can employ an iron condor strategy, which profits from stocks that remain range-bound. Baiynd believes that First Solar's stock will maintain its strength due to market support, making it an attractive candidate for these strategies.

The broader context of Trump's energy policy, as outlined in recent reports, suggests a significant shift from the previous administration's focus on clean energy. Trump's victory has already caused fluctuations in clean-energy stocks, with the MAC Global Solar Energy index dropping 10% following the election. Despite this, the Biden-era Inflation Reduction Act, which provides substantial subsidies for solar and wind projects, is expected to remain largely intact due to bipartisan support, particularly from states that have benefited from these investments.

Trump's administration is likely to prioritize fossil fuel production, potentially slowing the growth of renewable energy sectors. However, analysts believe that the momentum behind clean energy, driven by technological advancements and economic benefits, will continue. The U.S. has seen a significant increase in solar and wind energy capacity, supported by federal tax credits and state mandates.

While Trump's policies may introduce challenges, the clean energy sector is expected to adapt and continue its growth trajectory. First Solar, with its strong market position and strategic options for investors, stands to navigate these changes effectively.