Noteworthy BE Put and Call Options Set for October 31st
Put Contract Analysis: The $64.50 put contract has a bid of $7.40, allowing investors to buy shares at a cost basis of $57.10, which is a 3% discount from the current price of $66.53. There is a 60% chance the contract may expire worthless, potentially yielding an 11.47% return on cash commitment.
Call Contract Analysis: The $68.00 call contract has a bid of $7.30, offering a potential total return of 13.18% if the stock is called away at expiration. There is a 46% chance this contract may also expire worthless, which would provide a 10.97% additional return to the investor.
Volatility Insights: The implied volatility for the put contract is 99%, while for the call contract it is 95%. The actual trailing twelve-month volatility is calculated at 93%.
YieldBoost Concept: Both put and call contracts offer significant potential returns, referred to as YieldBoost, with annualized returns of 83.75% for the put and 80.10% for the call if they expire worthless.
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- Analyst Rating Initiation: Citigroup analyst Vikram Bagri initiated coverage on Bloom Energy with a Neutral rating and a price target of $162, which, despite being neutral, has led to a positive market reaction and a surge in share price.
- Strong Market Performance: Bloom Energy shares rose approximately 5% today, significantly outperforming the Industrials sector's 1.26% gain, indicating strong investor confidence in its growth potential within the industry.
- Remarkable Yearly Gains: Over the past year, Bloom Energy's stock has skyrocketed by 644.10%, currently trading at $169.55, just below its 52-week high of $176.49, showcasing robust bullish momentum.
- Technical Indicator Analysis: While Bloom Energy's RSI stands at 56.95, indicating neutral momentum, the MACD is below the signal line, suggesting potential short-term pullbacks, prompting investors to remain vigilant regarding market trends.
- Burry's Accusations Against Big Tech: Burry claims that major tech firms like Meta and Microsoft are manipulating accounting practices and extending depreciation schedules to inflate earnings, although he overlooks the long-term value of AI infrastructure and the potential for reusing GPUs.
- CAPEX and Cash Flow Strain: Burry warns that unprecedented capital expenditures will strain cash flow; however, Alphabet's cash from operations has soared from under $100 billion to $164 billion by 2026, demonstrating significant cash flow growth driven by AI.
- NVIDIA Valuation Controversy: Burry compares NVIDIA to Cisco during the 2000 internet bubble, arguing it is overvalued, yet NVIDIA's current P/E ratio of 47 is significantly lower than Cisco's over 200 at its peak, highlighting fundamental differences between the two.
- Surge in H100 Rental Prices: Since mid-December, rental prices for NVIDIA's H100 GPUs have increased by approximately 17%, indicating strong demand for AI infrastructure, which bodes well for related stocks like Nebius and CoreWeave.
- U.S. Stock Market Performance: U.S. stock indexes experienced a decline on Monday, with the overall market dropping by 1.66%.
- Specific Index Changes: The S&P 500 fell by 1.13%, while the Dow Jones Industrial Average decreased by 1.04%.
- Hedge Fund Allocation Analysis: Goldman Sachs analyzed regulatory filings from over 1,000 hedge funds, revealing that these funds had gross equity positions totaling $4.4 trillion at the start of 2026, with an overweight in the industrials sector exceeding 7.34 percentage points relative to the Russell 3000, marking a record high.
- Cyclical Sector Rotation: In Q4 2025, hedge funds increased their overweight in the industrials sector by 371 basis points, the largest change among all sectors, indicating strong confidence in economic recovery.
- Strong Sector Performance: The S&P 500 industrials sector has risen 14.2% year-to-date, making it the third-best performing sector, while over the past 12 months, industrials have surged 31.5%, becoming the largest gainer within the benchmark during that period.
- Popular Stock Dynamics: T1 Energy saw 36 hedge funds increase their positions in Q4 2025, and despite a 7% decline year-to-date, the stock has soared over 250% in the past 12 months, reflecting strong confidence from hedge funds.
- Significant Stock Decline: Plug Power's stock has fallen over 16% in recent weeks, now down nearly 60% from its 52-week high, indicating increasing bearish sentiment in the market that could undermine investor confidence.
- Impressive Revenue Growth: Despite Plug Power's revenue growth of approximately 880% over the past decade, profitability remains elusive, with a gross profit margin of negative 51.1% reported for Q3 2025, an improvement from negative 89.3% in the same period of 2024, yet still not profitable.
- Uncertain Profit Outlook: Management outlined a goal to achieve breakeven on gross profit by the end of 2025 and positive EBITDAS by the end of 2026 during an October investor presentation; however, their historical track record of underdelivering raises caution among investors regarding future profitability.
- Strong Competitor Performance: In stark contrast, Bloom Energy reported a diluted EPS of $0.45 in its Q4 2025 results, showcasing its ability to generate profits in the hydrogen sector, which heightens concerns about Plug Power's competitive position in the market.
- Significant Stock Decline: Plug Power's stock has fallen over 16% in the past month, now down approximately 59% from its 52-week high, reflecting bearish market sentiment that could undermine investor confidence.
- Substantial Revenue Growth: Despite challenges, Plug Power has achieved about 880% revenue growth from 2014 to 2024, indicating its market potential in the hydrogen sector; however, persistent losses continue to plague the company.
- Profitability Improvement Plan: Plug Power launched a cost-saving initiative called 'Project Quantum Leap' in March 2025, aiming for breakeven gross profit by the end of 2025 and positive EBITDAS by the end of 2026, showcasing management's optimistic outlook for future profitability.
- Comparison with Competitors: In contrast to Bloom Energy, which reported earnings per share of $0.45 in 2025, Plug Power's ongoing profitability issues highlight long-term challenges, prompting investors to carefully assess its investment value.










