Option Focus | Bloom Energy’s $27 Million Double-Short Put Spread Dominates Bearish Flow Despite a $2.86 Million Long-Dated Call Bet

Option Witch
Nov 06

Bloom Energy closed at $167.52, down 16.41%, after opening at $188.00 and fluctuating between $156.00 and $188.80 on volume of about 37.6 million shares.

Large options flow was led by a $27.02 million net-credit double-short put spread, overwhelming a $2.86 million long-dated out-of-the-money call purchase. The overall bearish tilt from the sold put structure contrasts with isolated speculative upside interest, leaving cautious institutional sentiment as the dominant signal.

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Options Indicators

Bloom Energy’s implied volatility is 112.91%, and with an IV percentile of 52.19%, its current volatility sits in a neutral historical range rather than at an extreme. Even so, the absolute IV level remains very high, and the IV/HV ratio of 1.15 indicates implied volatility is running above realized volatility, suggesting options carry a modest volatility premium and are not especially cheap at current levels.

The Call/Put volume ratio is 1.10.

Large Trades

A same-direction double-short put spread collecting $27.02 million in net credit was the dominant large trade, built by selling the November 6, 2026 $235.00 put and selling the November 6, 2026 $240.00 put, both in the money versus the $167.52 reference stock price. Because this combination contains two sold puts, it is best viewed as a premium-collection put spread structure rather than a pure directional upside bet, with the stated intent centered on harvesting premium while leaning on a range-bound outcome. Even so, the use of in-the-money short puts at strikes far above spot gives the position a neutral-to-bearish tone in the large-trade flow, as the seller is taking in premium but doing so at levels that imply meaningful downside exposure if weakness persists.

An out-of-the-money call purchase worth $2.86 million was the second notable trade, with 5,500 contracts bought on the January 15, 2027 $270.00 call. With the strike well above the current $167.52 stock price, this is a clear long-upside, convexity-seeking position that reflects a bullish directional view over a longer time horizon. Overall, the bulk-order flow points to a bearish near-term read on BE: although there is some speculative upside interest through the long-dated call buying and a couple of smaller bullish put-spread structures, the tape is dominated by the much larger premium-selling put combination, and the aggregate large-trade balance still tilts negative, suggesting cautious to defensive institutional sentiment rather than outright confidence in sustained upside.

Strategy Reference

For a low assignment probability, a seller could consider shorter-dated put spreads such as selling the $140.00 put and buying the $120.00 put, reducing both margin risk and premium exposure relative to the large in-the-money short put structure.

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