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Renewable Energy Stock Suffers as Analysts Pile On

ENPH options traders are writing calls at a rapid clip this morning

Managing Editor
Apr 23, 2025 at 10:40 AM
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Enphase Energy Inc (NASDAQ:ENPH) stock is sitting out the broad-market rally today, last seen down 6.8% to trade at $49.98. The renewable energy equipment company reported first-quarter earnings and revenue that fell short of expectations, with CEO Badri Kothandaraman citing tariffs as an impediment to business, potentially reducing gross margins by 2% in the second quarter. ENPH earlier hit a five-year low of $45.21, and is now down 28% in 2025. 

In response, no fewer than eight brokerages trimmed their price targets, the steepest coming from Jefferies to $37 from $44. There's still room for adjustments lower, considering the stock's 12-month consensus price target of $69.69 is a nearly 40% premium from its current perch.

Options traders have been loading up on puts. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), NFLX's 50-day put/call volume ratio of 1.24 ranks in 86th percentile of its annual range.

Today though, calls have the edge. In just the first hour of trading, 23,000 calls have changed hands, volume that's 10 times the average intraday amount and double the number of puts exchanged. The weekly 4/25 50-strike call is the most popular, as is the weekly 5/2 40-strike put, with sell-to-open activity detected at both. 

This strategy seems prudent. The equity's Schaeffer's Volatility Scorecard (SVS) sits at 10 out of 100, making it a prime premium-selling candidate.

 

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