Bloom Energy Options Flash Bullish as Stock Slides

Options traders turned sharply bullish on Bloom Energy on Monday. The put/call ratio dropped to 1.05 — a z-score of -3.08 standard deviations below its 20-day mean of 1.30. That's the most call-heavy positioning BE has seen in over a year, with the 52-week PCR low sitting at 0.47 and this read closing fast on that extreme.

The timing matters. Earnings land on July 28, one week away. Traders are loading calls into a stock that has fallen 40% in a month and 15% in the past week alone, closing Monday at $197.06.

The Divergence Worth Watching

Short sellers have been exiting for weeks. SI % of free float has dropped from above 12% in early July to 7.6% now — roughly 17.9 million shares short, down nearly 39% over 30 days. The covering wave that began around July 9-10 (noted in the previous article) has continued at a steadier pace since. Availability sits at a very loose 5,796% — more than 57 shares available for every one already borrowed. The borrow market is not the story here.

What is new is the cost-to-borrow. Despite that loose availability, CTB jumped 88% week-on-week to 0.50%. That's a small absolute number but a notable directional move. It suggests some fresh demand for borrows is appearing even as overall short interest continues to drift lower — possibly hedging activity around earnings rather than directional shorting.

Analysts Hold the Line

Despite the price drop, analysts haven't flinched. TD Cowen reiterated a Hold at $235 on July 20. Susquehanna raised its target to $298 on July 10. UBS went to $350 on July 1. Evercore ISI Group matched that at $350. The consensus mean target stands at $283 — 44% above Monday's close.

Bulls point to the Oracle partnership expansion — up to 2.8GW of fuel cells — as the structural anchor. Bears note the stock's reliance on data center customers and fuel price sensitivity.

The ORTEX EPS momentum factor scores tell a supportive story: 89th percentile on 30-day EPS momentum, 98th percentile over 90 days, and 100th percentile on forward EPS year-on-year increase. Earnings revisions have been running strongly positive into the July 28 print.

Data Summary

• SI % of Free Float: 7.6% (down ~39% over 30 days)
• Availability: 5,796% — extremely loose lending market
• Cost to Borrow: 0.50%, up 88% week-on-week
• PCR: 1.05, z-score -3.08 vs 20-day mean of 1.30
• Analyst mean target: $283.16 vs last close of $197.06
• Next earnings: July 28