Solar Stocks Rally as Traders Bet on Democratic Victory

Options traders increased bets on clean-energy and solar stocks on Tuesday, anticipating a Democratic victory in the midterm elections. This activity follows a period of significant sell-offs in the sector, as investors typically view left-wing leadership as beneficial to the solar industry.

Trading volume for the Invesco Solar ETF surged to 40 times its usual level, with call options accounting for 99% of contracts. Individual companies also saw significant rallies and increased volume. Enphase Energy saw its stock price rally 9% with trading volume doubling its average, while SolarEdge Technologies experienced a rally of over 6% and three times its average trading volume.