Selling our ENPH call contracts.
Enphase Energy (ENPH) has had a nice run thanks to the “Inflation Reduction Act” passage. Ironically, this bill has very little (if anything) to do with reducing inflation and is largely a tax-and-spend bill that will invest in clean energy initiatives.
Shares of ENPH are now quite expensive compared to expected earnings. And while profits will certainly grow, this speculative price leaves investors with a lot of risk.
The bullish move for ENPH may be largely played out at this point. So we’ll take our profits off the table for now and continue watching the stock in case there’s a good spot to re-enter a bullish trade later.