Bloom Energy ran from around fifty dollars to over three hundred and fifty, then cut itself in half and nearly in half again inside a couple of months. When implied volatility gets that high, the option chain stops looking symmetrical, and this episode digs into exactly why that happens.
Options an equal distance above and below the market are not priced equally. Upside strikes carry far more premium, because a stock can only fall to zero while there is no cap in the other direction. That asymmetry turns up in every name with volatility this extreme. Education, not a recommendation.
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Chapters
0:00 Deep in the money calls
1:05 Bloom Energy's enormous range
2:07 Reading the probabilities here
2:58 What creates outsized moves
3:34 Twice the premium ...