NuScale Power (SMR) Surges 15.7% on Intraday Rally: What’s Fueling the Momentum?

Summary
• NuScale Power (SMR) gaps up 15.7% to $18.87, hitting an intraday high of $19.55.
• House Energy Subcommittee hearing on nuclear policy and Trump’s executive orders drive optimism.
• Duke Energy’s ESP filing and TVA collaboration signal SMR deployment acceleration.

On January 5, 2026, NuScale Power (SMR) ignited a 15.7% intraday rally, fueled by a confluence of regulatory, policy, and industry catalysts. The stock’s surge reflects growing confidence in the U.S. nuclear renaissance, with Duke Energy’s ESP filing and federal mandates for SMR deployment acting as immediate triggers. Traders are now scrutinizing technical levels and options activity to gauge the sustainability of this momentum.

Policy-Driven Surge: House Hearing and Executive Orders Ignite NuScale Power
The explosive move in NuScale Power (SMR) stems from three key catalysts: (1) the U.S. House Energy Subcommittee’s hearing on streamlining nuclear deployment, (2) President Trump’s executive orders accelerating SMR timelines, and (3) Duke Energy’s ESP application for NuScale’s VOYGR technology. These developments validate NuScale’s role in the federal roadmap for 2026–2028 SMR deployment, particularly for military bases and industrial hubs. The stock’s 15.7% gain mirrors investor anticipation of regulatory tailwinds and infrastructure contracts, despite skepticism from analysts about near-term profitability.

Energy Sector Rally: NuScale Power Outpaces Peers Amid Nuclear Renaissance
The energy sector, particularly nuclear and clean energy, has seen mixed performance. While NuScale Power (SMR) surged 15.7%, sector leader Schlumberger (SLB) rose 9.5%, reflecting broader energy infrastructure optimism. However, traditional renewables and legacy utilities lagged as SMRs gain traction. The sector’s divergence underscores a shift toward baseload nuclear power, with NuScale’s NRC-certified design and TVA collaboration positioning it as the clear front-runner in the SMR race.

Options Playbook: High-Leverage Calls and Gamma-Driven Contracts for SMR Bulls
• 200-day average: $30.54 (far above current price); RSI: 27.29 (oversold); MACD: -2.51 (negative divergence).
• Bollinger Bands: Price at $18.87, near the middle band ($17.59), suggesting potential breakout.
• Support/Resistance: 30D support at $18.68–$18.86; 200D resistance at $34.65–$35.46.

Given NuScale’s short-term bullish momentum and high implied volatility, aggressive bulls should target bold SMR20260109C15 and SMR20260109C16.5.

SMR20260109C15 (Call, $15 strike, 1/9/2026):
• IV: 233.73% (high volatility)
• Leverage Ratio: 4.83% (high gearing)
• Delta: 0.8335 (strong directional bias)
• Theta: -0.2236 (rapid time decay)
• Gamma: 0.0485 (high sensitivity to price moves)
• Turnover: 8.5M (liquid)
• Payoff at 5% upside: $3.44/share (142% return).
• This contract offers explosive potential if NuScale breaks above $19.55, leveraging high gamma and leverage to amplify gains.

SMR20260109C16.5 (Call, $16.5 strike, 1/9/2026):
• IV: 175.13% (moderate volatility)
• Leverage Ratio: 7.00% (aggressive gearing)
• Delta: 0.7725 (moderate directional bias)
• Theta: -0.2140 (rapid time decay)
• Gamma: 0.0782 (high sensitivity)
• Turnover: 112K (liquid)
• Payoff at 5% upside: $2.44/share (245% return).
• This contract balances leverage and liquidity, ideal for a continuation of the current rally. Aggressive bulls may consider SMR20260109C15 into a breakout above $19.55.

Backtest NuScale Power Stock Performance
The strategy of buying SMR after a 16% intraday surge from 2022 to now delivered moderate returns but came with volatility. The 3-Day win rate was 50.36%, the 10-Day win rate was 54.87%, and the 30-Day win rate was 51.31%, indicating a higher probability of positive returns in the short term. However, the maximum return during the backtest was 18.87% over 30 days, suggesting that while the strategy had a good chance of gaining ground in the immediate aftermath of the surge, overall performance was mixed due to market dynamics and fluctuations in the index.

Bullish Breakout on the Horizon: NuScale Power’s Intraday Rally Points to Strategic Entry Levels
NuScale Power’s 15.7% surge reflects a pivotal shift in market sentiment toward SMRs, driven by policy tailwinds and infrastructure contracts. While technical indicators suggest oversold conditions and a potential breakout, the stock’s long-term viability hinges on meeting 2026–2028 deployment targets. Traders should monitor the $19.55 intraday high as a critical resistance level and consider the SMR20260109C15 call for leveraged exposure. With sector leader Schlumberger (SLB) up 9.5%, the energy infrastructure narrative remains intact. Act now: Position for a continuation of the rally or a pullback to $17.34 support.