Trade Of The Week: Unusual Options Activity In Bloom Energy

There was a very large options trade recently in Bloom Energy (BE) which stood out for a stock that doesn’t generally trade that many options. BE is a green energy company that had been enjoying a nice run higher in the stock price in recent months.

However, the company just announced it has to restate several years of revenues and it immediately prompted downgrades from analysts. A huge put buyer then came in and grabbed over 8,000 in-the-money puts expiring in May for about $2.6 million in premiums. This suggests there could be a substantial downside for the stock over the next three months.

(Video length 00:05:49)

Does everything seem to go wrong right after you place an options trade?

You watch the stock and everything is going right.

Then you open the trade... and within an hour, you've lost money.

It's not your fault. You just simply weren't given the "behind the scenes" knowledge every options professional knows.

If you knew how they worked, in 2018 - when the markets lost 6% - you could've booked gains of:

  • 127% in 23 days on GLD
  • 148% in 28 days on SQ
  • 229% in 36 days on SMH
  • 213% in 13 days on Netflix
  • 79% in 22 days on SPY
  • 63% in 24 days on SPY
  • 117% in 21 days on SPY
  • 96% in 36 days on QQQ
  • 114% in 42 days on MRVL

Just like I did.

The road to success for your first big, triple-digit options win is simple.

Have a plan for every trade so you don’t repeat rookie mistakes.

To help option traders avoid mistakes and make profits instead I’ve recently released my 11 part options trading video series.

In this easy to follow series, you’ll get up to speed quickly seeing the mistakes most traders make and how to avoid them. Plus, you’ll come away with an actionable plan to trade for a higher win-rate.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.