Crude oil prices have risen above $90, contributing to a 40% year-to-date rally in energy stocks within the S&P 500, which are currently the best-performing sector. However, options traders appear to be shifting their focus away from conventional energy stocks, opting instead for Bloom Energy, a power provider with a market capitalization of $82 billion.
Bloom Energy's stock has skyrocketed 1,800% over the past three years and saw a more than 10% increase in a single day, driven by options trading that exceeded 2.5 times its 30-day average, totaling nearly $500 million. This trading volume surpasses that of SpaceX options and significantly outpaces Valero Energy's trading.
Bloom's shares have gained over 30% in the past week and nearly 70% since its earnings report in late July. The company is set to join the S&P 500 on September 21, marking the first addition of an energy stock to the index since 2022, according to UBS analyst Manav Gupta.
Notably, Bloom Energy's implied volatility is over 90%, much higher than its S&P 500 energy peers, indicating heightened investor interest and speculation. In contrast, options trading for traditional energy assets like the U.S.
Oil Fund and the Energy Select Sector SPDR ETF showed mixed signals, with a notable number of put contracts being traded, suggesting a more cautious outlook among traders regarding conventional energy stocks