Solar Stock Options Surge Ahead of Midterms
Traders piled into solar call options on election day, but homeowners should judge rooftop solar by installer quotes and utility rates.
Updated on Nov. 3, 2026 in Electric Vehicles
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Options traders bought heavy volumes of solar stock call options ahead of Tuesday's midterm elections, as prediction markets priced in a large Democratic victory. Volume in the Invesco Solar ETF (TAN) reached 40 times its usual level on Tuesday.
Why it matters
Clean-energy stocks have been down on the year after a five-month sell-off, and the surge in bullish bets suggests traders expect policy outcomes to lift the sector. For households weighing solar or EV purchases, these market swings reflect expectations about future policy support rather than any change in product prices or availability.
Traders bought more than 20,000 TAN contracts by midday Tuesday, 99% of them calls, with the most popular trade being the 50-strike December call at 80 cents. SolarEdge rallied more than 6% and reports earnings before the market opens tomorrow.
The players
Invesco Solar ETF (TAN)
An exchange-traded fund tracking solar energy companies, widely used as a benchmark for the U.S. solar sector.
SolarEdge Technologies
A solar inverter and power optimization manufacturer whose products are common in residential rooftop solar installations.
Enphase Energy
A maker of microinverters and home energy systems used in residential solar and battery installations.
The details
Call options give the buyer the right, but not the obligation, to purchase a stock or fund at a set strike price before expiration, so heavy call buying is a bet that prices will rise. The most popular TAN trade sought a roughly 17% rally by December, while the most popular SolarEdge trade was the 35-strike call expiring Friday. Enphase Energy, which fell 20% after last week's earnings, saw its 35-strike January call trade at $2.45 per contract.
Timeline
Tuesday: midterm elections and the surge in solar options trading.
Last week: Enphase Energy stock fell 20% following its earnings report.
April of last year: TAN gave back almost all of its pandemic-to-2020 gains.
Friday: expiration of the popular SolarEdge 35-strike call.
January: expiration of the popular Enphase 35-strike call.
The Home Front
Solar stocks are down on the year after a five-month sell-off in the clean-energy sector, and the sharp election-day rally in call options reflects a bet on a policy-driven rebound. For homeowners, these market swings do not directly change installation costs or equipment pricing.
If you are considering rooftop solar, this market rally does not change what you pay for an installation, so compare quotes from licensed installers on the actual project price. Keep your utility rate and any available incentive paperwork on file, since those determine your savings far more than stock movements.
The takeaway
Stock-market enthusiasm for solar does not translate into a lower price on your roof, so focus on your local utility rates and licensed installer quotes. Calendar the SolarEdge earnings report if you follow the sector, but do not treat trading activity as a signal for a home energy decision.
What happens next
SolarEdge reports earnings before the market opens tomorrow, a scheduled event that will show whether its shares can sustain the election-day gains.
Further reading
Follow the broader movement of clean-energy investing in our Electric Vehicles coverage.
Source note: This article includes information reported by CNBC.
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