Bloom Energy’s 93% Call Bounce Faces Its $214.12 Test

By Grace Kim

GTA Terminal's Nov. 9 options data showed Bloom Energy Corporation Class A attracting $8.6 million of call premium in $9.3 million of total options premium as the shares rebounded about 14% to near $197. GTA Terminal also reported a 16% drop the previous Thursday.

What did the Nov. 9 options flow show?

GTA Terminal recorded $9.3 million in options premium by 10:48 a.m. ET: $8.6 million in calls and $660,000 in puts. Calls accounted for 93% of the total, and the put/call volume ratio stood at 0.51. The chart also counted 11 contracts traded above their open interest.

• Largest unusual trade: 2,620 Nov. 13 calls worth about $2.5 million, against open interest of 1,414.
• Nov. 13 $220 calls: 3,012 contracts, open interest of 875, about $964,000.
• Nov. 13 $210 calls: 1,512 contracts, open interest of 804, about $869,000.
• Nov. 13 $205 calls: 1,112 contracts, open interest of 496, about $817,000.

Call buyers supplied most of the measured premium, and the reported call activity centered on Nov. 13.

How sharp was the rebound?

GTA Terminal's daily chart put Bloom Energy near $197 on Monday, up about 14% after Thursday's 16% decline. On Nov. 5, the stock fell from $200.40 to $167.52 and printed a low of $156.00. It closed Friday at $173.24, opened Monday at $182.24 and reached $199.83.

The Nov. 5 low of $156.00 also marked the 60-day low, according to GTA Terminal. Monday's high of $199.83 remained below the $214.12 20-day moving average, so the rebound had not reached the first resistance level in the chart.

The stock recovered quickly from $173.24 at Friday's close, but Monday's trading still left it within a 20-day range of $156.00 to $264.14.

How much trading stayed off-exchange?

GTA Terminal's dark-pool data measured the off-exchange share of trading over five sessions:

• Nov. 6: 44.6%, or 10,360,148 shares.
• Nov. 5: 49.0%, or 18,449,211 shares.
• Nov. 4: 40.2%.
• Nov. 3: 48.8%.
• Nov. 2: 42.2%.

GTA Terminal put the period average at about 45%. The Nov. 5 share was the highest of the five sessions, while Nov. 4 was the lowest.

Off-exchange trading clustered around that roughly 45% period average.

Where do the technicals stand?

GTA Terminal's daily technicals kept Bloom Energy below four major moving averages: the 20-day at $214.12, the 200-day at $222.67, the 100-day at $241.19 and the 50-day at $245.77. The 20-day average was falling, which GTA Terminal read as a downtrend until price reclaims it.

The 14-period RSI stood near 43, up from about 34 at the Nov. 5 close. GTA Terminal also noted that the short-dated $205-to-$220 call strikes sat between the share price and the 200-day moving average.

The RSI had recovered from its Nov. 5 close, but all four moving averages remained overhead.

What levels matter next?

GTA Terminal identified four reference levels:

• $222.67: the 200-day SMA and an upside level.
• $214.12: the 20-day SMA and resistance.
• $180.50: Monday's low and support.
• $156.00: the Nov. 5 low, the 60-day low and the invalidation point.

GTA Terminal framed the near-term test this way: “A close back under 180.50 would fade the rebound, and a break of 156.00 would invalidate it.” The chart also included the disclaimer, “Not financial advice.”

GTA Terminal was watching whether Bloom Energy could hold $180.50 and push into $214.12, where the Nov. 13 call strikes cluster. A move through $222.67 would test the 200-day SMA and the upside level identified in the chart. The next test is whether Bloom Energy can clear $214.12; a break of $156.00 would invalidate the rebound.