The trading pits at the Chicago Board Options Exchange or CBOE are a vibrant theater of commerce where investors trade options. These contracts give the buyer the right, but not the obligation, to buy or sell shares of the underlying security at a specific price for a specific period of time.
Options traders such as our own Pete Najarian believe it’s possible to anticipate future movements in a stock, by watching the options volumes and seeing how many investors are betting a stock will move higher or lower.
So what’s the hot trade right now?
On Friday, the most active options were in SolarFun , explains Najarian.
And I’m seeing calls trading across the entire solar space. Keep an eye on First Solar , Energy Conversion Devices and Canadian Solar .