Traders Bet Big on Solar Stocks Before Midterms — SkimNews
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- Invesco Solar ETF (TAN) saw options volume surge to 40 times its normal level on Tuesday, with over 20,000 contracts traded and 99% of them being calls.
- SolarEdge Technologies was on pace for triple its average trading volume, with more than 75% of activity in call options ahead of its earnings report.
- Enphase Energy attracted strong call buying, with traders likely purchasing 8,600 calls versus fewer than 900 puts on volume twice its average.
- Charlie Moon of Prosper Trading Academy stated he would only favor solar stocks if Democrats win, noting Enphase stands out due to insider buying.
- TAN had rallied over 400% from its pandemic low through the 2020 election but gave back nearly all gains by April of the following year, highlighting its political sensitivity.
Why it matters: Clean-energy stocks are highly responsive to U.S. political shifts, and the current options surge suggests traders expect Democratic gains to revive policy support. With TAN’s past volatility tied directly to election outcomes, this positioning reflects a concentrated bet on immediate regulatory change—not fundamentals—making these stocks riskier in a close or split-result scenario.
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