Opportunistic trade on Enphase

April 17, 2020 - 12:53 pm

We bought shares in Enphase Energy (ENPH) back on Feb 6th at $38.19, and since the stock has rallied to $59 and now pulled back to $38 again.  We'd like to add more shares on a pull back to average down since we believe the long-term prospect are still very positive.

Buying Calls would make sense right now but we're holding off on that as we are long enough shares at this price, but if shares drop we'd like to add to our position, so we are selling the May 2020 $25 Puts on ENPH for $0.60 cents.

If shares drop below $25 we will gladly buy more shares at a net cost of $24.40.  If shares remain above $25 we will keep the premium.