Options traders are betting heavily on these stocks ahead of election results

Options trading in US solar shares surged on 3 November as voters went to the polls in the midterm elections. According to CNBC, more than 20,000 contracts in the Invesco Solar ETF had changed hands by midday, roughly 40 times its recent daily average, and 99% were call options. The activity suggested traders were positioning for a rise in clean-energy stocks if the election results improved the outlook for supportive policies. The rush followed a five-month decline that had left most stocks in the sector down for the year.

The interest extended to individual companies. SolarEdge Technologies was on course for about three times its usual options volume, with calls accounting for more than three-quarters of trades; its shares rose more than 6% ahead of earnings due the next morning. Enphase Energy shares gained 9%, recovering from a sharp fall after its recent results, while traders appeared to buy about 8,600 calls against fewer than 900 puts. The trades show strong demand for upside exposure, but they do not establish how the election will turn out or whether any policy changes will follow.