by Houghton and Atkeson 08/25/08
Generally, options across the market are quiet today. What is appearing toward the top of the list of actively traded names, though, are solar plays.
Today, we have seen heavier-than-usual call trading volume in Canadian Solar Inc. (CSIQ), Solarfun Power Holdings (SOLF), Yingli Green Energy Holding Co. (YGE) and Evergreen Solar Inc. (ESLR).
On Aug. 20, industry leader Suntech Power (STP) reported better-than-expected earnings and revenues and the stock jumped from $35 to $45 since the report. SunPower (SPWR), another leading solar play, received several upgrades and price target increases during the middle of August after receiving two solar power contracts for a total of 800 megawatts of renewable energy. The stock has climbed from the high-$70s to the low-$90s in the past two weeks.
The sun may be shining on the industry. No single option play jumps out at us at this moment. The PowerShares WilderHill Clean Engergy Portolio ETF (PBW) contains many of the solar stocks as well as other related clean energy companies.
Check out Toby Smith's related story, "Alternative Energy: Here Comes the Sun"
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Bryan Perry
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