ICLN is one of the 3 largest renewable energy ETF’s by assets under management. These 3 ETFs all have a significant holding on to stock ENPH. So it almost acts like an insulated ENPH proxy.
ICLN generally follows the S&P and the drops a less drastic. The recent 6% gap up was due to ENPH strong earnings (20% above estimates)
Overall it is generally a bullish sector and I think this has to do with the Oil and Gas conflict and volatility
Risk Mitigation
There is an uptrend S&R line and the Strike at 20 is at a position before their gap up. If we break this gap it would be a significant change in direction and time to exit
I expect some bearish movements that follows the broader market’s volatility but more muted
Imagine Yourself Taking The Other Side
It is not a bad decision to take the opposite direction, even with the same hypothesis. Just worried about the upward gaps since ENPH seems to be doing well
Look For New Information
Fed rate hikes are happening next week, this could be a game changer
How Do I Feel Now
I really like this trade, I need to find more like this
Trade Specs
Sold 300 PUTs @ 0.15
Strike 20
% to Strike: 13.09%
BP Used: 66K
Max Gain: 4500
Trade closed manually
Lost this trade. I am stop hedge trades because it doesn't work especially when the price accelerates against you
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