BE hit a new high of $346, but someone dumped nearly ten million to buy Puts at the close.

Recently, $Bloom Energy(BE.US) has been incredibly strong. On 6/18, a $5 billion AI data center power supply deal sent it up +11% in a single day, hitting a new 52-week high. On 6/22, it rose another nearly 6%, closing at $345.85 (+5.15%), with an intraday high of $349.99. The narrative of AI power shortages and fuel cells powering data centers is truly compelling right now.

However, just last night, while watching the options flow, I spotted something odd: BE's three large trades that day were all buying Puts, with not a single Call, totaling $11.6M poured in.

I reviewed the three option trades: The main one at 11 AM was a 9/18 expiry, $290 Put, 1954 contracts, average price $49.1 per contract, a single trade worth $9.59M. Note, the $49 premium is about 17% of the strike, with an absurdly high IV. This means someone is willing to pay a sky-high price to bet BE will fall below $290 within three months. The other two trades: one near-month 6/26 $300 Put ($1.14M, DTE only 4 days left, like betting on a pullback after a surge), and one deep out-of-the-money 7/24 $227.5 Put ($0.88M).

Three trades across three expiries, all in the same direction, and no visible hedging leg—it's hard to explain as "position hedging." It's more like someone, riding this wave of AI narrative, pushed the stock price to a resistance level (that day's $349.99 almost touched the previous high) and is putting real money on a pullback at the highs. The night session has already fallen nearly 6%.

Here's a thought for mimicking the trade (disclaimer: this is a contrarian trade. BE has strong momentum, shorting now is fighting the hottest narrative of AI power, and you could get slapped at any moment): Don't nakedly buy that $49 September Put (the IV is so expensive, an IV crush after the catalyst could wipe out half the premium). Instead, follow the main trade by buying the 9/18 $290 Put (avg. $49.1) while selling the 7/24 $227.5 Put (avg. $7.15) to reduce cost. The net cost per spread is $4,195. If it truly falls back to $227.5 and the spread maxes out, the profit is about $2,055 per spread. The risk-reward ratio is actually not great. I don't recommend this trade at this level. Only consider it if the stock price starts to stagnate near the $346 resistance or continues to fall further.