When you arrive in Boiling Bay and speak to Floofty, he will ask you to catch a Red Banaopper for him. These little guys like to live in trees and will jump between them. They are evasive, so you cannot catch them in a net or a trap.
If you head back up the beach from where you came you will come to some trees beside a small river of lava. A Red Banopper lives here, and you will be able to see him darting between the trees.
You need to set up your Trip Shot on a rock, then aim it at the mast of the crashed ship. This will cause the line to move between the routes that the Red Banopper takes. It might take a little time, but eventually, he will crash into the line, stunning himself and falling to the ground.
When this happens, you can just run up to him and grab him by hitting Square. If he falls in the lava, you will not be able to grab him as doing so will set you on fire, so copy the positioning in the image above to avoid this happening.
You will need to be careful of the Paletoss Grande that lives on the beach as well, as he can charge your equipment if he gets close enough. It might even be better to catch him before going for the Red Banopper. The easiest way to get him is to simply lure him into the lava to put out the frost, then trip him up with the Trip Shot.