TopOptionAlert
Oct 24, 4:06 AM
$ENPH NOV20 32.5C · still actionable
Zone:
$31.38 to
$31.82
Invalidation: close under
$30.25
Objectives:
$34, then
$36.50
The math: up 7.6% to the first objective and 15.5% to the second, against 4.3% risk on the invalidation, better than 3 to 1 to the second.
Dear friend, picture a beach ball held under the water by two strong hands, then let go on the third try. That is Enphase this month. It tested the
$28.59 low twice and held it both times, then rallied almost 8% in five sessions, which tells you the sellers are running out of steam just as the big test arrives. Third quarter numbers land Tuesday after the bell, and the street has cut its guess by more than a tenth in the last month, so the bar sits low enough for a decent report to surprise to the upside. This swing bets the bounce continues through the print, and a close under
$30.25 says the idea is wrong.
P.S. Watch the
$32.92 print from Wednesday; a daily close above it would confirm the bounce has legs before earnings.
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