Option Focus | Bloom Energy Sees $2 Million Bet on Deep Out-of-the-Money 2026 Puts as IV Percentile Hits 98%, Signaling Extreme Bearish Positioning

Option Witch07-24 16:53

Bloom Energy Corp closed at $217.30, down 0.42%. The session was marked by a single, massive $2.00 million put purchase, dominating the options flow and signaling a starkly bearish outlook. With implied volatility surging to the 98th percentile, this deep out-of-the-money 2026 put bet reflects a significant demand for long-dated downside protection or a strong conviction in a future price collapse, making it a standout event in today's trading.

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Options Indicators

BE’s implied volatility is 178.40%, and with an IV percentile of 98.41%, current option volatility sits at an extremely elevated level relative to its own historical range. Combined with an IV/HV ratio of 1.33, this suggests the options market is pricing in substantially richer premium than realized volatility, so contracts appear expensive at current levels and buyers are paying a steep premium for exposure. The Call/Put volume ratio is 0.62.

Large Trades

A PUT buy worth $2.00 million was the standout large trade, consisting of 19,999 contracts of the 105.0 put expiring on 2026-07-31. This was a single-leg bearish position placed well out of the money versus the reference stock price of $217.30, suggesting the buyer was targeting substantial downside protection or expressing a longer-dated bearish directional view. Because the trade was an outright put purchase rather than part of a spread or other combination, the strategic intent appears to be direct downside exposure, with the buyer paying premium for convex protection in the event of a sharp decline in BE shares. Overall sentiment in BE large options flow was clearly bearish. Total bullish premium was $0.00 million, while total bearish premium reached $2.00 million, leaving a net bearish difference of $2.00 million. With all meaningful large-trade activity concentrated in a sizable long put position, the options flow points to a decisively negative directional bias, likely reflecting either cautious hedging against a major drawdown or outright expectations for weakness over the longer term.

Strategy Reference

With IV at the 98th percentile and deep out-of-the-money puts in high demand, premium sellers might consider the July 2026 70.00 put for a lower assignment probability, though the rich premium is accompanied by tail risk. Alternatively, a bear put spread using the 105.00/70.00 strikes could finance the long put and reduce cost, but the original trade’s convexity would be capped.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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