Trade idea
Bloom Energy (BE) strangles
The speaker discusses trading Bloom Energy (BE) with a strategy involving strangles, noting that the stock has experienced significant volatility with +5% daily moves. The speaker mentions that the stock is currently at 119, with options expiring in 3 days showing a wide range. The speaker suggests that the volatility is around 120, and that spreads may not move significantly, so the strategy involves trading around mid-price. The speaker also notes that they would not trade anything naked in this environment due to the high volatility and risk.
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Strategystrangles
Assetstock
Expiration3 days
Time horizon3 days
Entry / triggerstock price at 119
Target / exit119
Invalidation / stop119
SpeakerMike
Structure / legs
- calls
- puts
Risks
- High volatility can lead to significant losses if the stock moves against the position.
- The speaker's strategy is based on personal experience and may not be suitable for all traders.
- The speaker does not provide specific details on the execution of the trade or the exact strike prices used.
medium confidenceVerify in video at 53:08 ↗