Options Income Strategy | BE pulls back on shrinking volume to test the $200 level; do large put-selling orders signal bullish sentiment?

1. Bloom Energy: Stock price continues to pull back on shrinking volume

Monday (August 31) $Bloom Energy (BE.US)$ Closed at $206.30, down 2.12%. The intraday high was $210.00 and the low was $202.88, with an amplitude of 3.378%. Turnover reached $2.073 billion, with a volume ratio of 0.755 and a turnover rate of 3.617%.

Technical Analysis:

$Bloom Energy (BE.US)$ After hitting a high of $351 in June, the stock entered a medium-term correction. It briefly fell below the 200-day moving average in late July but regained its position above the line driven by strong earnings results. Following this, it underwent volatile consolidation. Recently, Bloom Energy has closed lower for three consecutive trading days, falling from the $218 platform to around $206. In the short term, this represents a pullback on shrinking volume after a surge and retreat, with no trend-breaking breakdown observed yet; the stock price remains above the 200-day moving average. Immediate support is seen at the August 31 low of $202.88, followed by the $200 integer level.

Fundamental Analysis:

$Bloom Energy (BE.US)$ The medium-to-long-term thesis stems from the structural demand for power in AI data centers.As AI computing power grows explosively, hyperscale data centers face bottlenecks in grid connectivity, while traditional grid expansion takes years. BE's solid oxide fuel cells can provide power directly on-site, bypassing grid bottlenecks and enabling data centers to commence operations 12–18 months earlier. Management explicitly stated: 'All major US hyperscale cloud providers and over 12 new cloud service providers, AI labs, and hosted data center operators have validated and approved our solutions.'

The Q2 2026 financial results validated this thesis:Revenue increased 166% year-over-year to $1.07 billion; the company raised its full-year revenue guidance to $3.9–$4.2 billion; and the backlog reached $20 billion. Despite the strong Q2 performance, the 40% correction since the June high reflects market concerns regarding valuation.

Options Signals:

Recent activity in the options market has shown positive signals,Unusual options activity data shows that on August 31, a proactive sale opened a position of approximately 1,710 deep in-the-money put contracts, with a transaction value of $10.6704 million. These PUTs expire on October 16, 2026, with a strike price of $260.

Selling PUTs means the option seller assumes the obligation to take delivery of the stock at the strike price of $260, in exchange for a premium of $62.40 per share.

Break-even point:$260 - $62.40 = $197.60. This means the trade will be profitable as long as BE's stock price is above $197.60 at expiration.

This large order essentially represents significant capital betting on a high probability that BE will rebound above $198 within the next six weeks.

Note: While the 'selling deep in-the-money Puts' strategy in this large order can serve as a reference, retail investors should not directly replicate it.

2. Short Option Strategies

IV Analysis

The current at-the-money implied volatility (IV) is approximately 80.15%, while historical volatility (HV) is around 72.59%. Implied volatility remains higher than realized volatility. The IV for near-term major contracts ranges from about 77% to 86%, indicating that premium pricing is quite robust, offering sellers considerable room to capture time value.

Cash-Secured Put

Sell 1 contract of BE 260925 175P, and reserve sufficient cash for potential assignment.

Opportunity screening logic:

For investors who do not yet hold positions and recognize AI data centers as a main investment theme, chasing highs carries the risk of a pullback. Consider selling Puts to collect premiums; if the stock price pulls back to near the strike price, it effectively allows you to establish a position at a more favorable price.

Covered Call

Hold 100 shares $Bloom Energy (BE.US)$At the same time, sell 1 contract of BE 260925 250C.

Opportunity screening logic:

Already held $Bloom Energy (BE.US)$ For investors holding the underlying stock, there has been a short-term pullback with shrinking volume, but long-term support from the power theme remains. Investors who do not wish to sell their underlying shares directly can consider selling Call options to collect premiums and lower their holding costs. If the stock price rebounds above $250 and the options are exercised, it effectively locks in phased profits near the target price.

3. Risk Control Notes

Although short-option strategies generally have a high probability of profit, investors must still implement sound risk management:

- Position management is core. The biggest risk for sellers lies in black swan events. It is recommended that margin usage for a single underlying asset should not exceed 20% of total capital. Do not sell options beyond your capacity to absorb losses just to chase premiums.

- Pay attention to rolling positions for Covered Calls. When a Covered Call is deep in-the-money, if you remain bullish on the underlying stock, consider buying back the current option to close the position while simultaneously selling options with a further expiration date and a higher strike price. This avoids having the underlying stock forced to be sold at a low price.

- Cash-Secured Puts require vigilance against left-tail risks. If the stock price drops significantly due to deteriorating fundamentals, do not mechanically hold on. Instead, cut losses or roll down positions based on your risk tolerance.

Make good use of the Option Seller Zone to understand income strategies for selling options,and earn option premiums!

Investors can openFutubull >> Market >> Options >> Seller Zone >> Filter, to filter for option underlyings that suit their risk appetite and investment needs.

The screening criteria for the option cases provided in this article are:

Stock Screening: Market Cap > $10 billion; IV > 70%; Total Option Volume > 60,000 contracts

Option Screening: Days to Expiration (DTE) 0-45 days; Probability of OTM > 70%; Return > 2%; Annualized Return > 30%; Volume > 100 contracts

Underlying Selection Rule: Sorted by probability, prioritizing underlying assets with higher probabilities. Probability refers to the likelihood that the sold option contract will not be exercised, i.e., the Out-of-the-Money (OTM) probability. A higher probability indicates a lower chance of being assigned, and thus a greater likelihood of securely collecting the option premium.

All data and information in the Option Seller Zone are for reference only and do not constitute any investment advice.

This content is for reference only and should not be regarded or construed as an offer, solicitation, invitation, or recommendation to buy or sell any investment products, nor as a basis for investment decisions. It should not be interpreted as professional advice. Option contracts are derivative products and are not suitable for all investors. You should carefully assess whether you are suitable for participating in such trading based on your own investment experience, investment objectives, financial resources, and other relevant conditions.

The risk of loss in trading option contracts can be substantial. In certain circumstances, the losses you incur may exceed the initial margin deposited. Even if you have set contingency orders, such as "stop-loss" or "limit" orders, losses may not be avoided. Market conditions may prevent these orders from being executed. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be liable for any deficit in your account resulting from this. Therefore, before trading, you should study and understand options, and carefully consider whether such trading is suitable for you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and at expiration, as well as your rights and obligations upon exercise and at expiration. "Futubull" is a one-stop financial investment and trading platform, with securities services provided by Futu Securities International (Hong Kong) Limited.

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