ENPH has been trading in a tight pattern for the last month
Enphase Energy Inc (NASDAQ:ENPH) stock has reversed its sharp premarket losses, up 2.6% to trade at $116.48. The alternative energy company's first-quarter results and second-quarter revenue forecast came in below estimates, initially dragging the solar sector as a whole today. Jefferies downgraded ENPH to "hold" from "buy," while a flood of other analysts chimed in with mixed price-target adjustments.
Meanwhile, a coalition of six solar manufacturers are petitioning the U.S. to impose tariffs on imports from Cambodia, Malaysia, Thailand and Vietnam, which they argue are flooding the industry with cheap solar products.
On the charts, ENPH has spent the last month in a consolidation pattern, with the 200-day moving average providing overhead pressure. Despite the static price action, the stock has distanced itself from its Nov. 10 three-year low of $73.49. A short squeeze could help fuel a sustained breakout, considering 7.8% of the shares' total available float is sold short.
So far in the options pits today, 28,000 calls and 37,000 puts have been exchanged, which is five times the overall options volume typically seen at this point. The weekly 4/26 100-strike put is the most popular, followed by the weekly 4/26 120-strike call, with new positions opening at the latter.