Would you rather make money fast or slow over a long period of time? Trading options is not a get rich scheme. Normally I like to trade options in the 45 DTE range.
However, when there is a chance to make money quickly. When everything sets up just right, then why not take a swing at it? The quicker we can make money the better, right?
A great goal is to make 30-40% or sometimes even double your money when trading options in a small account. This can be accomplished through actively trading and taking advantage when things occur in the market and things just set up right.
In this video we will look at an easy option trade in ENPH Enphase Energy.
We’ll discuss:
- Why ENPH is a Great Company
- Why Selling an Iron Condor is the Strategy to Use Now to Trade ENPH
- How To Place an Iron Condor in ENPH (Showing a real example on the option trading platform)
——————————————————————–
Hey guys, Darren here. Thanks for watching. We talk about action steps you can take today to increase profits and reduce risks in your portfolios by trading options.
Before we start, if you appreciate all the research and information that goes into making a video like this, it does help out tremendously if you hit the like button or subscribe to be notified of more videos like this.
————————————————————
Be sure to download the FREE options Workshop in the link below.
It talks about the two main benefits of trading options over buying stocks.
DISCLAIMER, I am not a financial planner and I am not recommending trades. Please do your own research and if you are new or learning options, I recommend you start small.
—————————————-
Why is Enphase Energy A Great Company?
Enphase Energy provides solar home energy solutions including it’s smart IQ battery. They also design and manufacture EV charging solutions. Both of these are fantastic growth categories and there is a large amount of government money that will be spent into these markets going forward.
Let’s look at:
Why Selling an Iron Condor is the Strategy to Use Now to Trade ENPH
The stock is currently trading at the lower end of its 52 week range so I’m not too concerned about it crashing and going much further as it is a great value for a growth stock now.
Technical Charts
In looking at the chart on tradingview you can see that Enphase has been trading within around the 185 to 215 range for the past 3 months.
ENPH Fundamentals
Enphase fundamentals are great.
Enphase has been growing revenue at a fantastic clip. From $1.4B in 2021 to $2.3B last year. And they more than doubled Net Revenue.
They grew revenue 75% YOY and have a 17% profit margin and 63% Return on Equity.
Current Market Situation
There are mounting economic concerns weighing on the market right now. Many people think we are entering a recessionary period and the Fed is trying to curb inflation by raising interest rates and at the same time trying to avoid a recession.
This has contributed to big sell-offs for companies in the EV, charging, and renewable energy tech industries. While many investors have been hoping that some degree of economic slowdown will help depress inflation and cause the Federal Reserve to pivot away from interest rate hikes, new labor data came in worse than expected on multiple fronts and prompted pullbacks for companies with growth-dependent valuations. For these reasons I don’t see Enphase sky rocketing to the moon right now.
How To Place an Iron Condor in ENPH (Showing a real example on the option trading platform)
Let’s go to the Tastytrade trade platform. It’s the best platform for trading options. I’ll put a link down below.
We go to the trade tab and punch in ENPH in the upper left.
Normally I will go to the May 19 option chain since it is closest to 45 DTE. However Enphase has earnings coming on April 25th. So let’s open up the April 21st option chain just prior to the earnings announcement.
We click on the Bid to sell the 185 Put and Ask to Buy the 175 Put and collect 1.36.
We then scroll down and click on the Bid to Sell the 215 Call and the Ask to Buy the 225 Call.
Switch to the CURVE mode by clicking on Curve and can see our profit zone in green.
We collect $247 upfront for placing this Iron Condor option trade. As long as the stock price stays between the 185 and 215 strike prices in the next 9 days we keep the entire $247.
So You Can See How by Selling an Iron Condor we set up for the following:
We make $247 in just over a week
We avoid earnings risk by trading prior to the earnings announcement
Worst case, if the price does move outside of the profit range, we close the trade and roll to the next month and collect additional premium
———————————————————————————–
Alright guys, I’ve put a link down below for the FREE Options Workshop. Be sure to grab that.
Remember to hit like and subscribe and leave a comment below with your thoughts on the video.
Thanks and see you in the next one!