Favorite Solar Stock: ENPH looks ready to goENPH is the largest holding in the Solar energy Exchange Traded Fund (TAN) at 12.21%.
Notice how it's been consolidating in the form of a weekly bull flag for ~203 days - same length of time it took to breakout in the weekly flag between 2018 - 2019. Let's see if it does it again.
I want to be long the strongest solar name.
When you take a quick look at ENPH vs TAN, you'll see it broke out in June after consolidating for over a year against TAN.
ENPH bounced off the 50 week moving average and now building well on the shorter time frame (daily and 4hr) giving me the signal to get long this today and add into it this week.
TAN
Closing (IRA): TAN November 19th 70 Short Puts... for a .15/contract debit.
Comments: Plain Jane profit-taking here on approaching worthless. In for 1.19 on weakness and >35% implied (See Post Below); out here for .15/contract with 31 days to go in the contracts. 1.04 ($104) profit per contract. Implied isn't horrible here at 41.2%, but liquidity in the options has dropped off somewhat, and it isn't exactly "weak" anymore.
Opening (IRA): TAN September 17th 70 Short Put... for a 1.15/contract credit.
Notes: With 30-day implied at 42.8%, it's toward the top of my exchange-traded fund implied volatility screener. (The others are TQQQ, ARKK, MJ, XLE, and ARKG). Selling out in September here, as I've already got a rung on in August at the 75 strike. 1.7% ROC at max as a function of notional risk.
Opening (IRA): TAN August 20th 75 Short Put... for a 1.32/contract credit.
Comments: One of the exchange-traded funds that still has a 30-day implied of greater than 35% here (it's 38.8% at the moment) with expiry-specific at 40.3%. Unfortunately, it doesn't line up fantastically with price action; the strike is above the previous swing low around 68. However, I'm fine with taking assignment if that happens and proceeding to sell call against.
Closing (IRA): TAN May 21st 70 Short Put... for a .23/contract debit.
Notes: In for 1.93/contract (See Post Below), out for .23; 1.70 ($170) profit per contract. Options have gone somewhat illiquid versus when I put this on, so am fine with not waiting another 28 days for the small remainder of extrinsic to piss out.
Great consolidation before HUGE IMPULSE!📈Good day starts with a good trade, folks🔥
There is a great formation.
Ascending Triangle on TAN financial instrument.
There was a confident bearish movement before th consolidation.
According to Elliott Waves theory Wave D is done and now price is heading to Wave E.
However price may break support zone earlier.
That's why follow the chart and look for the breakout carefully.
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Closing (IRA): TAN April 16th 85 Short Put... for a .27/contract debit.
Notes: In for 2.31/contract (See Post Below), out for .27. 2.04 ($204) profit per contract. Was really thinking that I would have to take assignment, but this little bounce on zero day will do the trick. Still in some May 21st 70's.
The Week Ahead: WKHS, TLRY, NKLA, ACB, MJ, TAN, ICLN, IWMI'm doing a quick and dirty this week just to give me a sense of where premium is at ... .
Highly Liquid Single Name With Earnings in the Rear View Ranked by 30-Day Implied Volatility:
WKHS (27/232) (EV)
TLRY (13/193) (Cannabis)
NKLA (15/138) (EV)
ACB (6/124) (Cannabis)
SPCE (30/120) (Aerospace)
PLUG (39/113) (Alternative Energy)
NIO (41/107) (EV)
TEVA (11/103) (Pharmaceuticals)
TSLA (30/103) (EV, Alternative Energy)
NCLH (6/95) (Cruise Lines)
Highly Liquid Exchange-Traded Funds Ranked by 30-Day Implied Volatility:
MJ (39/76) (Cannbais)
TAN (47/71) (Solar)
ICLN (10/56) Alternative Energy)
KRE (9/54) (Regional Banking)
LIT (41/53) (Alternative Energy)
JETS (41/53) (Airlines)
SMH (21/46) (Semiconductor)
EWZ (7/46) (Brazil)
XLE (3/46) (Energy)
XBI (27/45) (Biopharma)
Highly Liquid Broad Market Exchange-Traded Funds Ranked by 30-Day Implied Volatility:
IWM (13/35) (Russell 2000)
QQQ (13/32) (Nasdaq)
SPY (8/24) (S&P 500)
DIA (3/22) (Dow Jones)
EFA (6/19) (Global Equity, ex. Canada/U.S.).
Opening (IRA): TAN April 16th 85 Short Put... for a 2.31/contract credit.
Notes: High 30-day at 63.7%. Going with the 17 delta strike in April. 2.79% ROC at max; 22.6% annualized as a function of notional risk. Will take profit on approaching worthless or take assignment/sell call against or roll if in-the-money toward expiry (whichever pays most).