Last Week’s Income Report:
April 26, 2021
Last week was a volatile one for stocks with the major indices experiencing big swings in both directions.
Most notably, we saw a big drop Thursday due in part to news that President Joe Biden is considering nearly doubling capital-gains taxes on the wealthy. But stocks rallied Friday as investors digested the news and we got more economic data pointing to a strong economic recovery.
At Options Income Blueprint, we closed three more successful trades last week, earning $292 in income.
This brings our April total up to 12 winners and $1,349 in cash with a week left to go in the month.
As you can see in the table above, two of last week’s closeouts were in the clean energy sector — FSLR and TAN.
This is an area of the market I will be looking to trade more often as it offers the combination of excellent growth potential and elevated volatility that option sellers love.
Take a look at the one-year chart of the iShares Global Clean Energy ETF (ICLN) below.
As you can see, there has been a lot of investor interest in the clean energy sector, with it really ramping up following the November elections. That’s hardly surprising given that President Biden and the Democrats said they will make climate change and green energy infrastructure top priorities.
However, after hitting a multiyear high in January, ICLN turned lower. It bottomed out in early March and has traded sideways ever since.
The charts of First Solar and Invesco Solar ETF have followed a similar pattern.
How long the sector will remain in a sideways trading range is anyone’s guess. But the longer it does, the greater the eventual breakout is likely to be.
Given that the political climate is ripe for further investment in clean energy, I expect the breakout to be to the upside. In the meantime, we’ll keep collecting cash from our favorite clean energy plays by selling options.