Centrus Energy (LEU) Surges 20% on HALEU Delivery and DOE Contract Expansion – Is This the Dawn of a Uranium Renaissance?

Summary
• Centrus Energy (LEU) rockets 20.36% intraday to $257.33, hitting its 52-week high of $264.53
• DOE exercises $110M Phase 3 of HALEU contract, signaling long-term demand for U.S. enrichment
• $833M cash balance and $3.6B backlog underscore financial resilience amid geopolitical uranium shifts

Centrus Energy’s stock has erupted on August 6, 2025, surging over 20% in a single trading session. This explosive move follows the company’s Q2 earnings report, which highlighted the successful delivery of 900 kg of HALEU to the Department of Energy and the initiation of Phase 3 of its $110M contract. With uranium sector momentum building from DOE-led domestic enrichment projects and Centrus’ robust financials, investors are scrambling to decipher whether this is a short-term rally or the start of a sustained uranium renaissance.

HALEU Delivery and DOE Contract Expansion Ignite Centrus’ Bull Run
Centrus Energy’s 20% intraday surge is directly tied to its Q2 earnings report, which confirmed the completion of Phase 2 of its HALEU Operation Contract and the DOE’s exercise of Phase 3. The company delivered 900 kg of HALEU to the DOE, a critical milestone validating its enrichment technology. The DOE’s $110M Phase 3 extension through June 2026, coupled with Centrus’ $3.6B backlog extending to 2040, signals long-term demand for its services. Additionally, the company’s $833M cash balance post-ATM equity raise and its role in reshaping U.S. energy independence have amplified investor optimism.

Uranium Sector Gains Momentum as DOE-Backed Projects Reshape Supply Chains
The uranium sector is experiencing a renaissance as the U.S. government accelerates domestic enrichment projects. General Matter’s $1.5B Paducah facility and NexGen Energy’s expanded offtake contracts highlight the sector’s growth trajectory. Centrus’ HALEU production aligns with DOE goals to reduce reliance on foreign uranium, particularly Russian imports. With Cameco (CCJ) up 3.5% on the day, the sector’s strategic importance in national security and clean energy is driving capital inflows.

Options and ETFs to Capitalize on Centrus’ Volatility and Sector Tailwinds
• MACD: 10.12 (bullish divergence), Signal Line: 15.21 (bearish crossover), RSI: 44.56 (oversold)
• Bollinger Bands: 253.97 (upper), 220.71 (middle), 187.45 (lower) – price near upper band suggests overbought conditions
• 200D MA: 106.38 (far below current price), 30D MA: 206.42 (support level)

Centrus’ technicals suggest a short-term bearish trend but a long-term bullish setup. Key levels to watch include the 200D MA at $106.38 and the 30D MA at $206.42. The stock’s 20% intraday surge has pushed it near its 52-week high, but RSI at 44.56 indicates oversold conditions, hinting at potential consolidation. The sector’s momentum, led by Cameco’s 3.5% gain, supports a bullish bias for uranium plays.

Top Options:
• LEU20250815P250 (Put, $250 strike, 8/15 expiration):
- IV: 84.52% (high volatility)
- Delta: -0.4367 (moderate sensitivity to price moves)
- Theta: -0.17798 (moderate time decay)
- Gamma: 0.011135 (responsive to price swings)
- Turnover: 120,774 (high liquidity)
- Leverage Ratio: 20.23% (moderate)
- Price Change Ratio: -67.62% (aggressive bearish potential)
- Payoff at 5% Upside (ST = $270.19): $20.19 (max gain if price stays below $250)
- Why: High IV and liquidity make this put ideal for short-term bearish bets if the rally stalls.

• LEU20250815P240 (Put, $240 strike, 8/15 expiration):
- IV: 84.82% (high volatility)
- Delta: -0.32638 (lower sensitivity)
- Theta: -0.257099 (higher time decay)
- Gamma: 0.010156 (moderate responsiveness)
- Turnover: 61,532 (solid liquidity)
- Leverage Ratio: 30.84% (attractive for aggressive plays)
- Price Change Ratio: -72.60% (sharp bearish potential)
- Payoff at 5% Upside (ST = $270.19): $30.19 (max gain if price stays below $240)
- Why: Higher leverage and IV make this put a compelling choice for aggressive short-term bearish positioning.

Action: Aggressive bulls may consider holding LEU20250815P250 into a pullback below $240. If $240 breaks, the $250 put offers a safer entry for short-term bearish bets.

Backtest Centrus Energy Stock Performance
The LEU ETF experienced a significant intraday surge of 20%, followed by a backtest that ran from August 5, 2020, to July 5, 2025. The strategy delivered remarkable performance, with a 1060.59% return, vastly outperforming the benchmark, which achieved a 85.39% return. The strategy's excess return was 975.20%, indicating that the 20% intraday surge was a catalyst for substantial long-term gains.

Centrus’ HALEU Momentum and Sector Tailwinds Signal a High-Volatility Window – Act Now
Centrus Energy’s 20% surge is a direct response to its HALEU delivery and DOE contract expansion, but the stock’s technicals suggest a potential consolidation phase. The uranium sector’s momentum, driven by DOE-led projects and Cameco’s 3.5% gain, supports a bullish outlook. Investors should monitor the 200D MA at $106.38 as a critical support level and the 30D MA at $206.42 for potential re-entry points. With the sector poised for growth, aggressive traders may capitalize on the high-IV options chain to hedge or leverage short-term volatility. Watch for $240 breakdown or regulatory developments in the DOE’s enrichment initiatives.