Enphase Energy Stock Surges on Plans to Join S&P 500

The equity sports a jaw-dropping 585.5% year-to-date lead

Digital Content Manager
Dec 31, 2020 at 10:09 AM
facebook X logo linkedin

The shares of Enphase Energy Inc (NASDAQ:ENPH) are up 3.7% at $179.25, at last check, after the clean energy tech name announced it will join the S&P 500 Index (SPX) before the open on Jan. 7, replacing fine jeweler Tiffany (TIF). This marks yet another win for the alternative energy sector, after Tesla (TSLA) joined the same index just a couple of weeks ago.

Enphase Energy stock has experienced unprecedented growth over the past year. Shares have been chopping higher on the charts since mid-March, to ultimately hit a Dec. 28, all-time-high of $189.41. And while the equity has cooled off slightly from those levels, it is still getting support from the ascending 10-day moving average. Year-to-date, ENPH is up a jaw-dropping 585.5%.

Analysts are optimistic toward the security, with 11 of the 16 in question sporting a "buy" or better rating, while the remaining five consider the stock a tepid "hold." Meanwhile, the 12-month consensus price target of $136.19 is a 23.1% discount to current levels. In other words, ENPH has plenty of room for price-target hikes going forward.

And while shorts are already hitting the exits, there is still plenty of pessimism left to be unwound, which could push the security higher in coming months. Short interest fell 5.9% in the most recent reporting period, but the 9.18 million shares sold short make up 7.8% of the stock's available float, or nearly three days of pent-up buying power. 

Drilling down to today's options activity, 15,000 calls have already crossed the tape so far, which is 12 times what is typically seen at this point. Most popular is the January 2021 200-strike call, followed closely by the May 270 call, with new positions being opened at the former.

Now seems like an opportune time to weigh in on ENPH's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 71% sits in the extremely low 9th percentile of its annual range, meaning the equity sports attractively priced premiums at the moment. 

Lastly, the security's Schaeffer's Volatility Scorecard (SVS) stands at an elevated 98 out of 100. This indicates ENPH has exceeded option traders' volatility expectations during the past year -- a boon for options buyers.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI