NuScale Power Soared 7%, Is This a New Energy Revolution?

Summary
• NuScale Power (SMR) opened at $46.94 and surged to an intraday high of $49.23, closing at $47.55, marking a 6.99% rally
• The stock snapped an eight-day winning streak as profit-taking pressure emerged after touching its 52-week high of $50.94
• President Trump’s nuclear energy executive order and AI sector optimism continue to fuel speculative momentum in SMR

NuScale Power’s 7% intraday surge reflects a confluence of speculative fervor and sector-specific tailwinds. The stock’s recent volatility—driven by policy-driven nuclear energy optimism and AI-related cross-sector flows—has positioned it at a critical juncture ahead of its August 8 earnings report. With a 52-week range of $6.88 to $50.94, SMR’s current price nears its upper boundary, amplifying the stakes for short-term positioning.

Profit-Taking Halts Eight-Day Rally Amid AI and Nuclear Policy Optimism
NuScale Power’s 7% intraday gain masks a broader pattern of profit-taking after an eight-day winning streak that saw the stock reach a 52-week high of $50.94. The rally, initially fueled by speculative demand for AI-linked energy infrastructure and President Trump’s executive order to expand U.S. nuclear capacity, has triggered short-term sellers. Investors are now weighing the stock’s technical overbought conditions (RSI at 66.64) against its strategic relevance to the nuclear energy boom. The upcoming earnings report on August 8 will likely dictate whether the current pullback is a correction or a catalyst for renewed momentum.

Specialty Industrial Machinery Sector Gains Momentum as BWXT Climbs 2.03%
NuScale Power’s 7% move outpaces BWXT Technologies (BWXT), the sector leader, which rose 2.03% intraday. While BWXT’s modest gain reflects broader industrial machinery strength, SMR’s volatility underscores its unique positioning as a speculative proxy for nuclear energy policy. The sector’s 52-week performance remains mixed, with Bodycote PLC (BOY.L) trading near its 200-day average despite a 52-week low of 460.60 GBp. SMR’s rally, however, is less tied to sector fundamentals and more to macro-level energy and AI narratives.

Leverage the 2X SMR ETF and Key Options for Short-Term Volatility
• 200-day average: $23.42 (far below current price)
• RSI: 66.64 (overbought but not extreme)
• MACD: 3.198 (bullish divergence with signal line at 2.656)
• Bollinger Bands: Upper at $49.40 (near current price), Middle at $40.20

SMR’s technicals suggest a continuation of its bullish momentum but with caution near the $49.40 upper Bollinger boundary. The Tradr 2X Long SMR Daily ETF (SMU) offers 12.91% leverage to amplify exposure, though its 3.02% turnover rate indicates moderate liquidity. For options, two contracts stand out:

• SMR20250801C46.5 (Call, strike $46.50, exp 8/1): IV 103.87% (high but reasonable), leverage 12.23%, delta 0.596, theta -0.266, gamma 0.047, turnover 12,020. This call benefits from high gamma (sensitivity to price swings) and moderate delta, making it ideal for a 5% upside scenario (target $49.93), with a projected payoff of $3.43 per share.
• SMR20250801P48.5 (Put, strike $48.50, exp 8/1): IV 78.79% (attractive), leverage 16.57%, delta -0.520, theta -0.003, gamma 0.064, turnover 30,900. This put offers high gamma (0.064) and low theta decay, hedging against a potential pullback while retaining upside potential if the $49.40 level holds.

Aggressive bulls should target SMR20250801C46.5 into a retest of the $47.55 pivot. Conservative traders may use SMR20250801P48.5 as a cost-effective hedge.

Backtest NuScale Power Stock Performance
The strategy of buying the SMR after an intraday surge of at least 7% has shown favorable performance across various time frames. The backtest results indicate a win rate of 50.93% over 3 days, 56.50% over 10 days, and 54.38% over 30 days. The average returns were 1.55% over 3 days, 5.62% over 10 days, and 14.94% over 30 days, with a maximum return of 25.70% achieved on day 59 after the surge.

Position Now: SMR’s Energy and AI Convergence Demands Immediate Attention
NuScale Power’s 7% rally has positioned it at a critical inflection point between overbought technicals and a bullish Kline pattern. With BWXT’s 2.03% gain signaling sector strength, SMR’s cross-sector appeal to nuclear energy and AI narratives remains intact. Investors should watch the $49.40 Bollinger upper bound and the August 8 earnings report for directional clues. For those seeking leverage, the Tradr 2X SMR ETF (SMU) offers amplified exposure, while the SMR20250801C46.5 call and SMR20250801P48.5 put provide tailored options for bullish and hedging strategies. Immediate action is warranted as SMR’s momentum—driven by policy and speculation—shows no signs of slowing.