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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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Trader disclosure: On June 19th, 2009, 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); Seymour Owns (AAPL), (BAC), (F), (NOK); Terranova Owns (SDS), (TER), (XBI), (BTU), (ABT), (MSFT), (HES), (BTU); Terranova Is Short (XOM) Call Spreads; Terranova Is Short (OIH) And (OIH) Puts; Terranova Is Short (RIG) And (RIG) Puts; Terranova Is Short (FCX) And Is Short (FCX) Puts; Terranova Is Short (GENZ) Call Spreads; Terranova Owns (GENZ) And Is Short (GENZ) Calls; Terranova Owns (X) And Is Short (X) Calls; Terranova Owns (MS) And Is Short (MS) Calls; Terranova Owns (DIS) Call Spreads; Terranova Owns (BRCM) And Is Short (BRCM) Calls; Terranova Is Short (IBM) Calls; Terranova Owns (RIMM) And Is Short (RIMM) Calls;

Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV); Virtus Investment Partners Owns More Than 1% Of (ABD), (CAL), (CLB), (DLR), (EPR), (EXR), (IGE), (MEE), (DBC), (DBV), (DBA), (SKT), (UA), (WBMD); Virtus Investment Partners Owns More Than 1% Of St Mary Land & Exploration Co,;Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights