ICLN Bullish inclined naked puts 14 Oct expiry

Ronin_trader Updated   
NASDAQ:ICLN   iShares Global Clean Energy ETF
Whats The Plan/Trade/Thought
  • ICLN is one of the 3 largest renewable energy ETF’s by assets under management. These 3 ETFs all have a significant holding on to stock ENPH. So it almost acts like an insulated ENPH proxy.
  • ICLN generally follows the S&P and the drops a less drastic. The recent 6% gap up was due to ENPH strong earnings (20% above estimates)
  • Overall it is generally a bullish sector and I think this has to do with the Oil and Gas conflict and volatility

    Risk Mitigation
  • There is an uptrend S&R line and the Strike at 20 is at a position before their gap up. If we break this gap it would be a significant change in direction and time to exit
  • I expect some bearish movements that follows the broader market’s volatility but more muted

    Imagine Yourself Taking The Other Side
  • It is not a bad decision to take the opposite direction, even with the same hypothesis. Just worried about the upward gaps since ENPH seems to be doing well

    Look For New Information
  • Fed rate hikes are happening next week, this could be a game changer

    How Do I Feel Now
  • I really like this trade, I need to find more like this

    Trade Specs
  • Sold 300 PUTs @ 0.15
  • Strike 20
  • % to Strike: 13.09%
  • BP Used: 66K
  • Max Gain: 4500
Trade closed manually:
Lost this trade. I am stop hedge trades because it doesn't work especially when the price accelerates against you

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