New Options for Enphase Energy Open for Trading Today

Enphase Energy Inc. (Symbol: ENPH) launched new options for trading today, set to expire on December 19th. With 205 days until expiration, these contracts present a potential opportunity for higher premiums compared to those with shorter expiration dates.

Stock Options Channel’s YieldBoost formula identified a notable put and call contract among these new December contracts. The $35.00 strike put contract currently has a bid of $4.40. Selling this put commits the investor to buying shares at $35.00, effectively lowering the cost basis to $30.60 after accounting for the premium. This alternative could attract those interested in purchasing ENPH shares at a price lower than the current rate of $39.70.

This $35.00 strike price offers approximately a 12% discount compared to the existing trading price, implying it is currently out-of-the-money. Current analytics estimate a 71% chance of the put contract expiring worthless. Stock Options Channel plans to monitor and report these odds over time, illustrating changes on their website. If the contract does expire worthless, the premium could yield a 12.57% return on cash commitment, translating to an annualized return of 22.38%—referred to as the YieldBoost.

A chart depicting Enphase Energy’s trailing twelve months trading history highlights the $35.00 strike location.

On the call side, the $40.00 strike call contract has a current bid of $7.85. If an investor buys ENPH shares at $39.70 and sells this call as a covered call, they are agreeing to sell shares at $40.00. The total return, excluding dividends, would be about 20.53% if the stock is called away at expiration. However, significant appreciation of ENPH shares may limit upside, making thorough analysis of historical trading and business fundamentals critical.

A chart emphasizes the $40.00 strike in reference to ENPH’s trading history.

The $40.00 strike price is roughly a 1% premium to the current trading price, indicating the possibility that the covered call could expire worthless. If that occurs, the investor retains both the shares and the premium received. Current data suggests a 38% chance of this happening. Stock Options Channel will continue to provide updates on these odds. If the contract expires worthless, the premium would represent a 19.77% additional return, or 35.20% annualized, termed as YieldBoost.

Implied volatility stands at 73% for the put contract and 75% for the call contract. The actual trailing twelve-month volatility, based on the last 250 trading days and the current price of $39.70, is calculated at 69%.

For further options contract ideas, visit StockOptionsChannel.com.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.