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Sometimes a trade works so well it almost feels too easy.
That’s exactly what happened with Bloom Energy (BE) — one of the best examples of my 12X Trader strategy working exactly as planned.
I sold a put spread around the $89 area, collected my premium, and watched the stock just keep climbing.
That put spread I sold is now trading at one penny — about as close to maximum profit as you can get without the calendar flipping to expiration day.
Here’s the thing about BE: This stock shows up on every scanner I run. And I mean every single one.
It’s been in absolute smoke mode, just grinding higher with the kind of momentum that makes selling puts feel like you’re getting paid to watch a parade go by.
Why I Let Winners Expire Worthless
Now, I was asked whether I’ve closed this trade yet…
Short answer: No.
I personally let trades like this expire worthless rather than paying commissions to buy them back at one or two cents.
When a position has done its job and there’s practically nothing left to squeeze out of it, I prefer to just let time finish the work.
It’s simple, clean and efficient.
That said, I get why some folks prefer to close early.
If BE suddenly dumped right before expiration, you could end up getting assigned the stock — and not everyone wants that risk, however small it might be.
So if you’d rather sleep better at night, closing at a penny or two makes perfect sense. It’s your call.
But for me? I’ll take the last few cents and call it good.
The 12X Approach: Sell Puts on Strength, Not Weakness
This is the core of what I do with my 12X Trader strategy— I sell put spreads on extremely bullish stocks.
Once a month, it’s either a put spread or a call spread depending on what the market gives us.
Keep it simple, keep it consistent and keep the odds in our favor.
I’m not trying to catch falling knives or guess bottoms. I’m identifying stocks with such strong upside momentum that a pullback to my short strike becomes highly unlikely.
We run these trades once a month, specifically on the first Tuesday that has a full week of trading because I want enough price action to shape the setup before committing capital.
BE is the textbook example. The stock kept showing relentless strength, kept appearing on my scans, and kept moving higher.
The put spread I sold never came close to being challenged.
That’s exactly the setup I’m looking for — stocks so strong that selling puts below the market feels almost boring.
Now, as good as it’s been, I’m not naive about market cycles.
We’ve been on a great run — undefeated recently — but I know that won’t last forever.
No strategy wins every trade. There will be losers.
That’s just part of staying in the game long enough to let the math work in your favor.
And boring, in this business, can be very profitable.
Geof Smith
Geof Smith Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
Hidden “Sleeper Cell” Orders are set to trigger in the next few days and some send unexpected stocks soaring…
So Roger and I will be teaming up at 1 p.m. ET this Sunday to reveal the entire secret,including the FULL list of stocks these orders look set to send higher in the coming days!
