Life Is Good In The Pits

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 .

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Trader disclosure: On May 16, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Pete Najarian Owns (AAPL), (BKC), (TSO), (XLF), (HPQ); Pete Najarian Owns (AA) Calls, (C) Calls, (MSFT) Calls; Macke Owns (MSFT), (ATVI), (DIS), (WMT), (INTC); Finerman Owns (GS); Finerman's Firm Owns (JCP), (MO), (MSFT), (NYX), (PLCE), (TSO), (VLO); Finerman's Firm Owns SPX Index Puts; Finerman's Firm Owns (C) And (C) Leaps, Finerman Owns (C); Finerman's Firm Owns (HD) And (HD) Puts, Finerman Owns (HD); Finerman's Firm Owns (YHOO) 1X2 Call Spreads; Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); Finerman's Firm And Finerman Own Shares Of Hong Kong Stock Exchange; Finerman's Firm Owns (GLNG); GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"

Jon Najarian Owns (NFLX); Jon Najarian Owns (STP); Jon Najarian Owns (SOLF); Jon Najarian Owns (CME)