Big Blue Backs Solar

We spotted some big headlines on Monday as the world frantically searches for alternatives to fossil fuels. Here’s what’s got our attention:

- IBMhas joined forces with semiconductor process company Tokyo Ohka Kogyo to develop more efficient solar power technologies to cut the cost of the clean energy source, the companies said on Monday.

- Honda'snew zero-emission, hydrogen fuel cell car rolled off a Japanese production line Monday and is headed to Southern California, where Hollywood is already abuzz over the latest splash in green motoring. The FCX Clarity, which runs on hydrogen and electricity, emits only water and none of the noxious fumes believed to induce global warming. It is also two times more energy efficient than a gas-electric hybrid and three times that of a standard gasoline-powered car, the company says.

- Credit Suisse upgraded SunPower , which designs and makes solar electric systems, to "outperform" from "neutral" on indications of better-than-expected pricing as strength in Italy and other areas drives global demand.

- Energy Conversion Devices surged 10% after it announced plans to expand into the solar business.

Traders, how do you play these headlines?

My favorite name in the space is ENER, explains Pete Najarian. However you need to wait for a dip.

Check out MEMC Electronics , counsels Guy Adami, with a stop at $63. I think it could have a 70-handle on it.

There’s 20% open interest in the space, explains Joe Terranova, that suggests to me there isn’t confidence in alternate energy, yet.

Honda isn’t talking about shipping these cars in volume, exclaims Jeff Macke. They’re jaw-boning! They may as well be selling pixy dust.

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Trader disclosure: On June 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 (NUE), (AGU), (C), (GS), (INTC), (BTU), (MSFT); Macke Owns (ATVI), (MSFT), (INTC), (WMT), (HAS), (DIS); Najarian Owns (AAPL), (BHI), (CHK), (ENER), (HPQ), (TSO), (XLF); Najarian Owns (GME) Calls; Terranova Owns (GS), (LUV), (FXC); Terranova Is Long Dec 2008 Crude Oil; Terranova Is Short Dec 2009 Crude Oil; GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC