Bullish on BE due to Power Connect reducing installation time by >40% and strong AI demand; expects price to reach $240 within 20 days.

Guys, we got to talk about Bloom Energy. This stock has a lot of implied volatility, which is the focus of my video today. I want to give you analysis on Bloom Energy.

So on August 19th, Bloom introduced Power Connect. And for the past two weeks, my community has been asking me a lot about this stock and I've covered it a couple times on my channel.

It's been very interesting. But now I think this is a perfect opportunity for investors to run an option strategy that I'll discuss later. But first I want to give you a breakdown of the technical analysis and what I think is going to happen with Bloom Energy next.

So take a look at the chart right here. You can see that Bloom Energy has basically spiked to over $300 per share and then the stock has taken, you know, a nose dive all the way down to under $200.

The volatility has been very intense. And what you see right now from this fall is actually a stabilization. So here we have some stabilizing activity in all of August for the past 30 days.

And this right here, these black lines, this is a Bowlinger band. This is one of the key technical analysis tools that I teach within my community. I've been teaching the Bowlinger band for 6 years now.

And what I like about the Bowlinger band is that it tells me the range where the stock is likely to trade.

So what happened on August 19th is Bloom introduced Power Connect which says that they can reduce on-site installation time by more than 40%. And time is the most important factor right now because speed to power is actually the bottleneck that I see.

So this is really important because Bloom's biggest advantage is speed to power already. So do you guys realize that speed to power is Bloom's competitive advantage? But now as August 19th, Bloom introduced Power Connect. is actually reduces their on-site installation time by more than 40% further.

This gives them a significant competitive advantage and this is why I think that Bloom Energy stock is actually likely to go towards the higher end here of you know next 20 days.

I think the next 20 days is going to be very insightful with Bloom Energy.

I think $240 per share is kind of like my price target, which is pretty insane because the stock is so volatile. You know, 240 might not seem like a lot, but that's a lot. That is a lot, okay?

Cuz a 10% move in the stock is 20 bucks. So, gone up to 240 is over a 10% move. That's insane. Okay? And if I catch that in my community, which is my plan going into um as the market opens up, then we're going to do well.

We're going to make some money. So Power Connect is kind of my catalyst here why I think the stock can go up.

So, Bloom isn't just trying to produce cheaper electricity. They're trying to sell something AI companies may value right now way more than anything else, which is really time.

Okay, that's what I think Bloom Energy's advantage is. And that's the point of my video of why I am pretty bullish on Bloom Energy. And I think $24 per share could happen in the next 20 to 30 days.

It's really conveniently at $200 per share right now. And we can see that the market cap is at a $60 billion market cap. I think, you know, I'm not going to say it's a hundred billion company.

And I don't even need to say that. All I'm trying to do is with the wheel strategy, I just want to collect a ton of premium. That's my goal. I just want to make hand over fist, bicep over tricep premium premium cash flow.

That's that's it. That's all I want, right? I'm not trying to hold this stock into the future. I don't think this is the next Nvidia or anything like that.

Although, their numbers are getting pretty crazy. Like in Q2 Bloom, their strongest quarter ever was um over a billion dollars in revenue. So, it was 1.065 billion. And when you look at the revenue growth as a percentage, boy oh boy, that percentage is wild. 166% year-over-year.

Honestly, like when I look at their partnerships, it's it's looking good. So, one main partnership that they have is a Bloom and Brookfield, which actually ended up expanding their AI infrastructure financing partnership from 5 billion to 25 billion in June.

So, you know, that was like 3 months ago, right? We're in September. But what's interesting is I do see that playing out in their like in their money in the money money. Their money is looking great.

Investors that are looking to make money, I think Bloom Energy is a good position in a portfolio. It's volatile and it's not cheap, but hey, if you got some money, if you have a portfolio that's, you know, in the five figures, multiple five figures, man, there's a lot of money we can make off of options some there. There's honestly genuinely a lot.

So, their uh relationship with Brookfield's financing increased by 5x from 5 billion to 25 billion in June. And um you know, I think that's going to continue to lead them into high revenue growth.

So, that's why I like this. I think Bloom doesn't only need customers, they they need partnerships, okay? They need to really tackle this as fast as possible because in AI things are changing so fast.

They they got to make quick money. They have to uh scale fast, make fast money cuz who knows what competition is going to look like. There is risks to competition for sure.

So when I look at Bloom Energy, I think they're bringing the the power right now in technology. So let me go to trade Bloom Energy um be stock and I want to show you um what I'm looking at.

So I just want to go back here to the technical analysis. Um if I'm running the wheel strategy, right? You can see here that there's kind of a mindset that you should have. Okay.

Yes, I'm bullish, but we also have to look at risk management.

And one simple way, one of the ways that I assess risk is I look at the Ballinger band. So what is the bottom of the Ballinger band? How low could this stock potentially go in the next 20 days?

Technically, right? I look at it fundamentally as well. That's beyond this video. Technically though, 194. That's it. Okay. 194 here.

The moving average. I'm going to zoom in here to the moving average a little bit. We can't really see it, but the moving average is looks like it's around 240 238. So, we see that the stock is below the moving average.

It's a little cheaper than the last average 50 days. That's actually a good sign. It's a little bit better of a value. So, if we bridge this gap, we got $35 to go or so. And on the bottom end, I don't see the stock falling, you know, below 194 in the next 20 days.

It would be unusual. Can happen, but it would be unusual. So, we have about, you know, $20 on on the downside for protection.

So, look, if I'm going to run the wheel strategy, okay, I love the wheel. Been teaching the wheel all the time, weekly for seven, six years. It's been a long time. And I like the wheel specifically on high implied volatility stocks.

That's why BE is good because BE high implied volatility.

Let me show you. So, if I go for the next 20 days, let's say I want shorter term income. Okay, that's my goal here. Then I'm going to go down here. I'm going to I'm going to expand the 190.

We're going to take a look at it. You can see the implied volatility is about 80. Okay. Typically stocks are 30 35 40 above 50. That's high implied volatility. It's high. That's good because as an option seller who's running the wheel strategy, um it is more profitable to sell options when the implied volatility is high.

Okay. So again, our bottom is about 194. So, you know, if I wanted to be safer, if I wanted to generate income and and be um safer and produce income, then I want to go below, you know, where I think the support level is, 190, I would say, is a mini support.

I'm not going to call it a strong support because the fact is AI stocks are super volatile. So, I'm trying to optimize here, okay? My goal is to optimize. If I want to produce money, if I want to produce fat stacks of cash, just cash, I'm trying to build, trying to get bicep over tricep results.

If I want that type of scale, I must not only be safe because I don't want to blow up my portfolio. I must also look for high implied volatility. Biggest lesson, biggest takeaway.

So with BE, the delta here is 28, which is pretty good. That means there's a 20% chance of, you know, B going to 190 or below based off of the delta. Okay, the delta is a great metric.

It's one of the most important metrics that I look at all the time. Delta is incredibly incredibly important. Okay, the bid ask spread here is pretty tight. 69715 is good. That's tight bid ass spread.

So, simply to start the wheel strategy, you just sell puts. Okay, it's it's a pretty simple process overall. So, if I sell a put here, um it's about $700. Okay, which is, you know, pretty decent.

It's definitely not uh anything crazy. So, if I wanted to increase this, I would just go closer to the money. So, I would go 195 right here. Let's expand this option. Now, this one does have implied volatility exactly 80.

The delta here would be a bit higher. So, right here, I would collect $880. And you know, this is very attractive because it's only in a twoe period.

Now, what's more attractive is the second portion of the wheel strategy, which is once you get assigned, right, you're basically selling a put with the risk and danger of getting assigned.

That's not a bad thing. You know, let's say that we got assigned last week or what, right? And Bloom Energy is at 2011 and we got assigned at 2023, right? So, we're under the water a [clears throat] bit, right?

So, what we what will we do, right? Once you get assigned in the wheel strategy, we just sell calls. Just keep it going. Keep the cash flow going. keep that, you know, money coming in.

How do you do that? Sell calls. Soon as you sell puts once you get assigned, you will get assigned. Your risk is pretty high because, you know, the delta is around 30. Three out of 10 times you'll get assigned.

And then what? You got paid $880. Okay. Now what? Well, now you sell calls.

So, if your average cost is 202, yes, in the wheel strategy, the way I teach it is you want to sell covered calls above your average cost because otherwise, if you sell a call, a covered call on the shares that you have and it's below your average cost, well, you're not, you know, you can still make money depending on your average cost, but ideally, we want to be above our average um cost per share.

Okay. So, let's go for an option that is going to be above our theoretical 202 average cost, which is 205. we don't have to go too much higher. Although, I'll tell you, I do think be can be 240.

Um, and because I do see a shorter term run, I probably would give myself a bit more room. Let's go for let's say uh 215 here.

Okay, now this is really interesting because um you have upside up to 215. You have nice premium $1,100. You can actually you can actually see here it seems like the options are skewed towards calls.

You can see that I'm going out of the money by a lot and the premium is still really really high. So it seems like um there's a skew where call pricing right now is more which also is a pretty bullish indicator.

Okay, investors seem to be placing more volatility and more skew. Can see a little bit higher on the implied volatility. We can see a little bit of a skew for the calls. Okay, so that's a pretty decent indicator that there could be a bullish move and option traders are potentially also thinking that that could be the case.

So 215 here premium is actually nice, very very nice. So yeah, once you get assigned in the wheel strategy, you have shares, right? Each contract's 100 shares. Then you just sell out of the money uh covered calls on the shares.

So you still have your shares, you sell 215 covered call, premium here is $11.20, 20 which actually effectively makes your break even $226 per share.

So when I look at um like as a company what Bloom Energy is doing they're solving the time problem. This might be more important than the fuel cell technology itself. Okay. So I think that timing is really important.

Investors realize that you know this is a big part of the AI bottleneck. Also all the hyperscalers are also using BE. So yeah I'm pretty bullish on it. I don't even think we need to go to 240 for investors to see, you know, great cash flow, great premium collection from option selling, which is, you know, what I'm known for, what I've been doing for I've been personally doing it for 11, 12 years thereabouts, and I've grown my portfolio to seven figures, a lot of it from option selling, but in the earlier days, I was also option buying.

I think Bloom Energy has lots of opportunities for option buyers. If you want some of my option buying strategies and what I'd be doing with be, I'm going to be discussing that live in my Discord community.