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Chinese Solar Wafer Maker Sees Upside Options Activity

Tuesday, 9 Jun 2009 | 8:06 AM ET

Chinese solar wafer maker ReneSola rose yesterday along with some upside options activity.

Trading was focused on the July 7.50 options, where more than 7,500 calls traded in a strong buying pattern, according to OptionMonster's tracking systems. That total approached four times open interest and dwarfed the average call volume of just 91 contracts at that strike.

ReneSola may be a bit overdone at this stage, having rocketed roughly 50 percent in just the last week even after lowering guidance in May. The shares, which ended yesterday's session up 8 percent to $6.71, will still need to rise at least another 20 percent for those July 7.50 trades to turn a profit.

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Options Trading School:

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.

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