Oklo Inc. (OKLO) stock has surged from $70 to $140 in two weeks with implied volatility at 120.83%. A Bear Call spread trade predicts OKLO won’t rise above 180 in three weeks to benefit from a drop in implied volatility. The trade involves selling an out-of-the-money call and buying another further out-of-the-money. The spread has a potential 11.11% return if OKLO stays below $180. The company, a clean power technology and nuclear fuel recycling firm, is based in New York.

A Bear Call spread involves selling an out-of-the-money call and buying another further out-of-the-money. For OKLO, selling the $180 call and buying the $185 call creates the spread. The trade, priced at $0.50, offers a $50 premium with a maximum risk of $450. The break-even point is $180.50, and if OKLO closes above $185, the trader loses $450. Technical indicators suggest a bullish outlook. Risk management for the trade includes setting a stop loss based on the premium received or if the stock breaks above $150. Betting against parabolic moves carries risk, and options are volatile. Always consult a financial advisor before making investment decisions.

Read more at Yahoo Finance: Oklo Bear Call Spread Could Net 11% in Three Weeks