Equity markets are positioning for a volatile stretch as Bloom Energy and Tesla head into quarterly earnings, with options activity pointing to outsized near-term moves in both stocks.
Bloom Energy shares have fallen to $218, their lowest level since September 3, after reaching about $300 in September. The options market is pricing in sharply higher volatility: implied volatility stands at 131%, compared with historical volatility of 83%. Volume data shows a put/call ratio of 0.51, reflecting more call activity, while put/call open interest is 1.01, indicating a larger standing put position. Calls are concentrated around $250, roughly 14% above the current price, while puts are concentrated near $220. The company previously dropped 14% after its July report and jumped more than 20% after first-quarter results.
For the third quarter, analysts expect Bloom Energy revenue of about $1.07 billion, a 106% year-over-year increase, and full-year revenue of approximately $4.12 billion, up 103%. Investors will also watch for updates on Project Jupiter, the Oracle-linked project for which Bloom Energy is a service provider. Oracle recently declared a force majeure on the project, citing challenges including natural gas supply. On the technical side, Bloom Energy shares are testing the 200-day exponential moving average, with resistance near $250 and support around $200.
Tesla, meanwhile, reports on October 21. Consensus estimates point to adjusted earnings of $0.44 per share and revenue of $28.3 billion, representing declines of 12% and less than 1% year over year. Despite the expected drop, options traders are positioned bullishly: the put-to-call ratio for weekly contracts is 0.47, below the 1.00 threshold that typically favors bulls. Barchart data shows the upper options price at $397, implying a potential post-earnings rally of nearly 6%. Tesla shares are trading above major moving averages, with an RSI in the mid-50s leaving room before overbought territory.
Much of the bullish options sentiment is tied to Tesla's artificial intelligence and autonomous driving initiatives rather than its core EV business. Last week the company also unveiled its new Roadster vehicle. ARK Invest chief executive Cathie Wood said Tesla could reach $5,000 within six years, a roughly 10x opportunity through 2031, citing humanoid robots and robotaxis as trillion-dollar opportunities. Wall Street remains far more cautious, with a consensus Moderate Buy rating and a mean price target of about $401, implying roughly 7% upside.
