Right, I know about the indexed palette System, with color 0 being not drawn, from working with the soldier and weapon sprites. (It's not necessarily pink, being an indexed Palette system - it's often drawn pink so it's easily distinguishable, but it's really just "color 0", the palette dictates what it will look like )
So again, why not make an overlay sphere? It appears to be easy to implement and will suffice for now, and can be easily adapted to an alpha blend version later.
EDIT: I've added a mockup picture of what I think it could look like.