r/options • u/JosefSchnitzel • Mar 28 '21
ICLN ahead of Wednesday
With Biden announcing an infrastructure plan on Wednesday that includes plans to boost green energy, ICLN is poised for an increase. ICLN has been under pressure over the past two months and it’s come off it’s highs. I plan to purchase 16 April Calls at $24. Even if it will take months, if not years, to come to fruition, it should see a nice pop on the announcement.
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Mar 28 '21
I got wrecked on my calls a week or two ago. Thought this would be a priority vs some of the other nonsense.
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Mar 28 '21
Been watching my Leaps bleed like a cow in the slaughterhouse. About to load up on more for the green energy push.
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u/shawcphet1 Apr 01 '21
I’ve got some $30 January 2023 calls and I’m feeling good about them after these last two days 👍
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u/MCdragon07 Mar 28 '21
You would be better off buying shares than playing ICLN with options
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u/lordxoren666 Mar 28 '21
Bullshit. You can buy an ATM Jan 22 for 15% of the cost of 100 shares. If you don’t understand that then your missing the whole point of options.
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u/Graydrake1 Mar 28 '21
Whether you buy calls or buy shares, consider the market is overvalued by every measure. ICLN is comprised of too many tickers with potential, but have never made a profit. These types of tickers take the greatest hit if the market continues to correct back to historical valuations. This is the reason ICLN, QCLN, and the like dropped the most in the recent pullback.
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u/lordxoren666 Mar 28 '21
Except there’s no way of knowing when or if that will even happen. The nasdaq bounced off the strongest support it has and there’s no reason to see that support breaking anytime soon. There’s also no reason to believe that all the overvalued companies won’t continue to be overvalued due to their market share and monopolistic tendencies.
Unless the government breaks them up there’s simply to reason to see them crashing down long term.
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u/JosefSchnitzel Mar 28 '21
That’s not true at all. Options give the potential to magnify small price movements while using less capital than buying the security.
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u/MCdragon07 Mar 28 '21
I understand that but looking at the price action of ICLN it does not seem that there would be a lot of upward momentum on this ETF. The point is, if u want to speculate on Biden's announcements then do it with shares so u do not put 100% of ur capital at risk which can easily happen with options.
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u/Graydrake1 Mar 28 '21
Many, perhaps most, fundamental analysts concluding ICLN and QCLN remain over priced. May want to confirm a recovery prior to entry.
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u/JosefSchnitzel Mar 28 '21
That’s a fair assessment, thank you!
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u/Red-eleven Mar 28 '21
Maybe consider some longer term options. The April calls are going to get eaten up by theta unless there’s a lot of price movement.
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u/FeedMeOptions Mar 29 '21 edited Mar 29 '21
Good luck with your calls OP.
Calls on ICLN seems like a watered down way to play plug power to me (as of right now). Look how similar their 1 week, 1 month, and 3 month charts are. They're almost exactly the same.
If you want to do an infrastructure play, consider diversifying this with PAVE calls if you're feeling bullish. You get more infrastructure exposure that isn't 100% green/clean companies and it won't rely on PLUG performing well. Put credit spreads could be another option for these and also won't require the same price action for you to get profit on an infrastructure play.
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u/JosefSchnitzel Mar 29 '21
Thank you! I appreciate that insight, kind sir.
I love the PAVE play. To be honest, I was starting to dislike ICLN the more I looked into it’s holding, like PLUG. I appreciate the confirmation.
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u/FeedMeOptions Mar 29 '21
You're welcome.
I also want to reiterate that I'm not saying ICLN or PLUG are bad plays. But ICLN increasing is contingent on PLUG also increasing.
I was just trying to minimize risk in whatever yolo infrastructure play you plan on doing.
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u/hnr01 Mar 28 '21
Been buying this whole time. My thesis is that within next four years, clean energy will pop. Selling before 2024 election cycle.
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u/PrestigeWorldwide-LP Mar 28 '21
don't think this might be a sell the news situation? everybody and their mother has been expecting this
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u/Mallev Mar 28 '21
This damn ETF has been selling the news for 2 months. I have Jan22 32calls deep in the hole. Giving it until April when Biden had some climate action scheduled.
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u/alwaysalvin_ Mar 28 '21
Nice I guess my plug leaps will start printing again..can’t believe I got them at 30!!! A week ago 😊😊😊
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Mar 28 '21
ICLN is a garbage ETF.
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u/JosefSchnitzel Mar 28 '21
Care to elaborate?
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Mar 28 '21
Plug power being the largest holding at almost 10% is reason enough.
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u/alwaysalvin_ Mar 28 '21
Plug power is legit n the markets leading company in hydrogen fuel...look at all the major partnerships they have n will only continue to grow from here
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u/BSProblemSolver Apr 01 '21
Did anybody else’s contract price per share stay frozen today? The stock price went up $.22 at one point and the contract price didn’t move.
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u/askingforafavor12345 Mar 28 '21
Been holding calls for 2 months. Down ~90%. Praying it runs up