by Ian Harvey
August 04, 2019
Enphase Energy was recommended to “Cut-to-the-Chase” members on July 29, 2019; providing a potential profit of 463%.
Then again, an options trade to consider was offered to “Stock Options Made Easy” readers on August 1st, 2019; which returned potential profit of 138%.
And most recently, yesterday, September 3, “Cut-to-the-Chase” members entered an options trade in the morning and exited in the afternoon; for a quick potential profit of 80%.
A NICE POTENTIAL PROFIT TO START THE WEEK!
Enphase Energy Inc (NASDAQ: ENPH), the company that designs and manufactures software-driven home energy products that include solar generation, home energy storage and web-based monitoring and control, had reached a peak after rallying more than any other stock in the space this year with a more-than-600% gain.
This was a pronounced moment that showed that it was a likely time for traders to start taking profits, and this was evidenced last week, as shown in the chart below.
The first two trades were call options based on the fact that Enphase Energy was still on an upwards trajectory; but realizing that the time had come for a pull-back; we recommended that “Cut-to-the-Chase” members execute a put option yesterday, which gave a very quick substantial profit within in a few hours.
The original recommended options trade was focusing on an up-beat earnings report, which came to fruition, sending our options trade from $1.60 to $9.00 before pulling back.
The second options trade had an entry of $4.00 before reaching $9.50.
Yesterday’s trade had a starting price of $1.00 before reaching $1.80.
Without reiterating the positive motivation points behind the first 2 call trades; read the following…..
YOU NEED TO BE IN TO PROFIT!
Why the Put Trade?
The fact that traders were looking to take profits on a high-flying growth stock, saw Enphase Energy stock, on Friday of last week, close down to $29.67 marking a -4.75% loss from the preceding day.
These losses continued yesterday, falling from $29.67 to $27.69, for a loss of 6.88%.
The page displaying the information for this trade cannot be accessed yet as it is part of the recommendations for ““Cut-to-the-Chase” members this week. However, besides profit taking, the main reasons are explained further below.
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
Where to Now?
Taking a more long-term approach, ENPH has a 52-week range of $3.70 to $35.42. At the moment, shares of Enphase Energy, on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses.
Enphase Energy stock is currently trading at 37 times its estimated earnings for the next 12 months. Enphase’s peer SolarEdge Technologies is trading at 19 times its forward earnings. SolarEdge stock looks cheaper than Enphase Energy stock. However, investors might not mind paying more for such a high-growth stock.
However, overall, analysts largely seem more positive than negative about the stock. Among the nine analysts covering Enphase, six recommended it as a “buy and single analysts each recommend a “strong buy,” “hold,” and “sell” as of August 25. Enphase Energy has a 12-month price target set at $30.63.
Management remains positive about the company’s growth prospects and raised earnings guidance for the second half of the year. Based on estimates, its net income in 2019 will increase tenfold from last year.
Enphase Energy turned profitable in the fourth quarter of 2018. It’s been profitable for the last three consecutive quarters. Wall Street analysts expect its revenue and earnings growth to double in the second half of the year.
Enphase Energy’s growth was mainly driven by increased demand for solar microinverters and higher AC module shipments. Since the solar industry is expected to grow, there’s huge growth potential ahead for Enphase Energy—the key technology provider for panel makers.
PATIENCE PAYS OFF!
What Can You Do?
Obviously the trade war is causing havoc with most stocks at the moment, but after the dust settles Enphase Energy is well positioned to continue its upwards movement, due to…..
Therefore, consider the following options trade…..
Buy the ENPH FEB 21 2020 30.000 CALL at approximately $5.00.
If you not a member and interested in being part of this profitable action just CLICK HERE.
AS ALWAYS THE DECISION IS YOURS!
OR other memberships.....
.....Mentorship Membership …….CLICK HERE......
....."Earnings Predictions" just click here……
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!