GO
Loading...

The Sun Also Rises

Friday, 16 May 2008 | 4:03 PM ET

As oil continues to gush higher, hitting another new record Friday, more attention is being paid on trading floors around the country to alternative energy stocks -- particularly solar.

Fast Money Final Call
Solar plays, with Jon Najarian, co-founder of OptionMonster.com

While many solar stocks saw sizable profit taking earlier this year, they’re back in a big way, Jon Najarian said on Thursday’s Closing Bell. Just check out Solarfun , which broke through its resistance level of $18.90 and rocketed up over 20% on Friday.

As far as Najarian is concerned, the solar names should continue to march higher so long as oil stays above $120. On the flip side, he’d expect “wholesale selling” of solar stocks if oil crashes comes back down to earth.

These are corollary positions to crude and will continue to be driven by the price of a barrel, the same way the airlines go down as oil goes higher. So remember that when you trade solar, you’re essentially trading the price of oil.

Najarian briefly touched on wind power, another rejuvenated sector of alternative energy that he thinks will also continue to see gains. American Superconductor is his favorite wind play.

______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

  Price   Change %Change
AMSC
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report