Solar Companies Shine

By TENNILLE TRACY

NEW YORK -- Options traders rallied around solar companies after the Chinese Ministry of Finance said it will start to offer subsidies for solar energy.
Among the most active stocks were Suntech Power Holdings Co., LDK Solar Co., JA Solar Holdings Co. and Yingli Green Energy Holding Co.
Trading in Suntech Power climbed to 12 times the normal level, with investors picking up 32,000 calls that allow them to buy the company's stock and 22,000 puts that allow them to sell it, according to Trade Alert.
Investors showed interest in Suntech's April $12.50 calls, as well as longer-dated May $12.50 calls. The former are priced at 85 cents and make money if Suntech climbs above $13.35 before April 17. The shares closed at $11.29, gaining 44%.
In LDK Solar, which closed at $7.76, up 32%, investors gravitated toward April $10 calls. And in JA Solar, which closed at $3.77, up 42%, investors liked April $5 calls.
In Yingli Green Energy, investors scooped up April $5 calls and took short positions in September $2.50 puts. Yingli shares closed at $6.01, gaining 45%.
Fueling the activity were reports that China will provide relatively generous subsidies to help cover the costs of solar panels.
Write to Tennille Tracy at tennille.tracy@dowjones.com