Prop Desk: Solar

On Friday invsestors took a hard look at SunPower after UBS analyst Stephen Chin revised his rating to "Buy" from "Neutral" and his 12-month per-share price target to $38 from $26.

Meanwhile, Baird initiated coverage of First Solar with a "neutral" rating and a price target of $180.

And last month Jefferies upgraded SolarFun to "Hold" from "Underperform" on an improved outlook.

Considering the industry is at its infancy and solar stocks are notoriously volatile, how should you trade the space?

Options trader Jared Levy tells the desk he likes First Solar. “It’s a best of breed play,” he says. “And they’ve got all their ducks in a row. I'm a buyer.” 

How’s he playing it?

"Get long by selling the July 150 puts -- that allows you buy stock cheaper,” he counsels

"With oil above $70, I like Suntech," adds Tim Seymour. "They have big exposure to Europe which has been aggressive in this technology."

"Be careful in this space," counters Guy Adami," if the oil trade unwinds solar could too and very quickly,.”

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