Invesco Solar ETF Options Top 20,000 Contracts on Election Day

Solar-linked options trading expanded on U.S. midterm Election Day, with the Invesco Solar ETF drawing far more contracts than usual as traders positioned ahead of results and SolarEdge Technologies shares climbed before an earnings report.

TAN traded more than 20,000 option contracts by midday Tuesday ET, about 40 times its usual volume. The ETF had averaged fewer than 500 contracts per day over the previous month, and calls accounted for 99% of Tuesday’s activity. The most popular trade involved a December $50 call purchased for $0.80, while $46 and $47 calls also attracted interest for nearer expirations.

Prediction markets priced in a large Democratic victory as traders focused on solar stocks often viewed as beneficiaries of Democratic leadership. The activity came after a five-month sell-off that left most companies in the solar industry group down for the year.

SolarEdge options volume was on pace for roughly three times its average, with calls representing more than 75% of activity. Its shares rose more than 6% Tuesday ahead of the company’s scheduled earnings report before the market opens Wednesday, Nov. 4. The most popular SolarEdge trade was a $35 call expiring Friday.

Enphase Energy options volume was about twice its average. Its shares had fully recovered from a 20% post-earnings decline and rose 9% Tuesday. Traders were likely buying about 8,600 calls, compared with fewer than 900 puts. The most popular Enphase contract was a January $35 call priced at $2.45.

TAN had gained more than 400% from its pandemic low through the 2020 election, then gave back almost all of those gains by April 2025. SolarEdge’s earnings report is due before the market opens Wednesday.