NuScale Power (SMR) Surges 7% on Landmark TVA-ENTRA1 Nuclear Deal: What’s Fueling This Volatile Move?

Summary
• NuScale Power (SMR) surges 7.04% intraday, trading at $37.09 after opening at $33.01
• TVA and ENTRA1 Energy announce 6-GW nuclear project leveraging NuScale’s SMR technology
• Options chain shows 20 contracts with implied volatility ratios above 65%, signaling heightened speculative activity
• Turnover hits 16.67 million shares, 15.6% of float, as investors react to strategic partnership news

NuScale Power’s stock has erupted on Tuesday, climbing 7.04% to $37.09 amid a landmark agreement between TVA and ENTRA1 Energy to deploy six nuclear power plants using NuScale’s small modular reactors (SMRs). The deal, which could power 4.5 million homes, has triggered a surge in options activity and volume, with the stock trading near its 52-week high of $53.50. This move underscores the growing urgency in the energy sector to address AI-driven demand and data center expansion, positioning NuScale at the forefront of a potential nuclear renaissance.

TVA-ENTRA1 Nuclear Partnership Ignites SMR Demand
NuScale Power’s 7.04% intraday surge is directly tied to the Tennessee Valley Authority’s (TVA) collaboration with ENTRA1 Energy to develop a 6-GW nuclear portfolio using NuScale’s SMR technology. The agreement, announced on September 2, 2025, involves ENTRA1 Energy developing and owning the plants on TVA sites, with electricity sold via future power purchase agreements. This partnership marks the largest deployment program in U.S. history, leveraging NuScale’s certified SMR design and ENTRA1’s exclusive commercialization rights. The deal’s scale—six plants across TVA’s seven-state region—has amplified investor optimism about NuScale’s role in meeting surging energy demands from AI, data centers, and advanced manufacturing. Additionally, the need for NRC approvals and site-specific licensing has not dampened enthusiasm, as TVA’s existing infrastructure and ENTRA1’s financing capabilities position the project as a near-term catalyst.

Nuclear Power Sector Gains Momentum Amid Energy Security Push
The nuclear power sector is gaining traction as global energy security concerns intensify, with NuScale’s SMR technology at the forefront. While sector leader Bristol-Myers Squibb (BMY) edged up 0.38%, the broader nuclear theme is being driven by strategic partnerships and regulatory advancements. Recent sector news highlights life extensions for UK reactors and Poland’s first SMR site selection, reinforcing the sector’s resilience. NuScale’s TVA-ENTRA1 deal aligns with a broader trend of public-private collaborations to scale nuclear capacity, contrasting with the pharmaceutical sector’s slower-moving fundamentals. This divergence underscores the urgency in energy markets to address decarbonization and AI-driven demand, making NuScale’s SMR commercialization a critical differentiator.

Options and Technicals: Navigating NuScale’s Volatile Breakout
• RSI: 36.75 (oversold)
• MACD: -1.98 (bearish), Signal Line: -1.86, Histogram: -0.11
• Bollinger Bands: Upper $45.69, Middle $37.59, Lower $29.49
• 200D MA: $26.75 (well below current price)
• Kline Pattern: Short-term bearish trend, long-term bullish

NuScale’s technicals suggest a volatile breakout, with the stock trading near the upper Bollinger Band and RSI in oversold territory. The 200-day moving average remains a distant support level, while the 30D MA at $41.24 and 100D MA at $32.39 indicate a potential consolidation phase. For traders, the key levels to watch are $38.47 (intraday high) and $32.60 (intraday low). A break above $38.47 could trigger a retest of the 52-week high at $53.50, while a drop below $32.60 may reignite short-term bearish momentum.

Top Options Picks:
• SMR20250912C37
- Strike: $37, Expiration: 2025-09-12, IV: 81.61%, Leverage: 16.89%, Delta: 0.54, Theta: -0.16, Gamma: 0.075, Turnover: 69,032
- IV (Implied Volatility): High volatility suggests strong price expectations
- Leverage: Amplifies returns on a directional move
- Delta: Moderate sensitivity to price changes
- Theta: High time decay, ideal for short-term plays
- Gamma: High sensitivity to price acceleration
- Turnover: High liquidity ensures ease of entry/exit
- Payoff (5% upside): $37.09 → $38.94 → max(0, $38.94 - $37) = $1.94 per share
- Why it stands out: This call option balances leverage and liquidity, ideal for capitalizing on a continued rally toward the 52-week high.

• SMR20250912C38
- Strike: $38, Expiration: 2025-09-12, IV: 82.38%, Leverage: 21.00%, Delta: 0.47, Theta: -0.16, Gamma: 0.075, Turnover: 69,055
- IV: High volatility aligns with market expectations
- Leverage: Strongest among listed options for directional bets
- Delta: Slightly lower sensitivity, reducing risk of rapid decay
- Theta: High time decay, suitable for aggressive short-term plays
- Gamma: High sensitivity to price acceleration
- Turnover: High liquidity ensures trade execution
- Payoff (5% upside): $37.09 → $38.94 → max(0, $38.94 - $38) = $0.94 per share
- Why it stands out: The highest leverage ratio (21.00%) makes this contract ideal for aggressive bulls targeting a sharp move above $38.47.

Trading Setup: Aggressive bulls should prioritize SMR20250912C38 for a high-leverage play on a breakout above $38.47. Conservative traders may use SMR20250912C37 as a hedge against a pullback to $35.50. Both contracts benefit from NuScale’s strategic positioning in the nuclear renaissance and TVA’s infrastructure advantages.

Backtest NuScale Power Stock Performance

NuScale’s SMR Breakthrough: A Catalyst for Long-Term Gains
NuScale Power’s 7.04% surge is a direct result of the TVA-ENTRA1 Energy partnership, which positions the company as a key player in the U.S. nuclear renaissance. While technical indicators like RSI and MACD suggest short-term volatility, the long-term bullish trend remains intact, supported by the stock’s 305% revenue growth and strategic exclusivity with ENTRA1. Investors should monitor the $38.47 intraday high as a critical breakout level and the $32.60 low for potential support. Meanwhile, sector leader Bristol-Myers Squibb’s 0.38% gain highlights the divergence between energy and pharmaceutical sectors, underscoring NuScale’s unique positioning. Action: Buy SMR20250912C38 for a high-leverage play if $38.47 holds; watch for regulatory updates on NRC approvals.