Buying ENPH call contracts.
Enphase Energy (ENPH) delivers solutions for solar power generation, storage and distribution.
The “Inflation Reduction Act” will direct massive amounts of government stimulus towards green energy projects and ENPH is a natural beneficiary.
The stock broke to a new all-time high yesterday and appears to be picking up momentum. While this is a bit of a speculative play (ENPH is expensive relative to earnings), the stock should continue to trade higher as money managers look for ways to gain exposure to this area of the market.
Our in-the-money call contracts will allow us to participate if the stock continues higher, while muting our risk if shares pull back.