Whats The Plan/Trade/Thought
- 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
交易手动结束:
Lost this trade. I am stop hedge trades because it doesn't work especially when the price accelerates against you