I plan to take a position in Enphase Energy (ENPH) call options asap…
Fundamentals:
Even though ENPH does not check my favorite boxes, the macro-economic business outlook for the alternate energy sector is starting to look bright(er)…
For instance, during the Biden/ Xi summit last week, the 2 countries agreed to work closely together in weaning their respective economies away from fossil fuels and move to alternate energy.
On this news, the entire alternate energy sector jumped, including ENPH, which popped 16%+
And late yesterday, a very negative piece of news on climate hit the wires:
Earth passed a feared global warming milestone Friday, at least briefly
The above negative news will only spur the world’s migration away from fossil fuels and move toward alternate energy. Don’t be surprised if this “migration” very soon turns into a stampede.
In the sector, Enphase Energy is, one of the best run companies…just look at the numbers:
Technicals:
Though no piercing of the stock’s Bearish Resistance Line just yet, nonetheless, its PnF chart is looking promising. And its Candlestick Chart is showing a strong move from the bottom. With the change in its business’ macro-economic outlook, I predict the alternative energy sector has made a bottom and it should now be all up from here. And if I am right, ENPH will be one of the biggest beneficiaries from this sector rotation.
I will therefore buy a small tracking position in ENPH call options when the markets open: Buy 2 contracts at market price, of ENPH December 15, 2023 Strike Price: $95; Current ask: $4.60
Should ENPH stock prints above last week’s high of $98.42, I will add to my position.
And should it print $100 on its PnF chart, the stock has a “nothing but air” gap all the way above to $115.00…I believe it will go up and fill that gap!
Let’s watch the action!
karim
DISCLAIMER: I am not a licensed broker or securities dealer. All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is not for the faint of heart as one’s portfolio can move up, or down 10%-50% or more during a single trading day. Therefore, trade options with extreme caution. Past performance is no guarantee of future results.
Full Disclosure: I own options in the stocks of companies mentioned in my posts.