Centrus Energy Surges 14.6% on Expansion Plans and Geopolitical Tensions – What’s Fueling This Rally?

Summary
• Centrus Energy (LEU) surges 14.6% intraday, hitting a 52-week high of $316.72
• Expansion plans at Ohio facility and $1.2B in funding drive investor optimism
• Uranium futures climb to $80/lb, while North Korea’s enrichment activities amplify sector momentum
• RSI at 72.66 signals overbought territory, but bullish technicals align with fundamentals

Centrus Energy’s stock has erupted 14.6% in a single session, fueled by a multibillion-dollar expansion plan and geopolitical tailwinds. With uranium prices at decade highs and North Korea’s nuclear ambitions intensifying, the uranium sector is in a tailwind phase. The stock’s 361% YTD surge now faces valuation scrutiny, but technicals and sector dynamics suggest momentum remains intact.

Ohio Expansion and Geopolitical Catalysts Ignite LEU’s Rally
Centrus Energy’s 14.6% surge stems from its announced $1.2B expansion of the Piketon, Ohio facility, aimed at boosting low-enriched uranium (LEU) and high-assay LEU (HALEU) production. The move aligns with U.S. government contracts and growing demand for nuclear fuel in small modular reactors (SMRs). Simultaneously, North Korea’s confirmed operation of four uranium enrichment facilities, including covert sites, has heightened global nuclear security concerns. Uranium futures surged to $80/lb, the highest in ten months, while South Korea’s intelligence report on North Korea’s 2,000kg HEU stockpile further stoked sector demand. Centrus’ leadership in industrial-scale enrichment technology, coupled with its strategic partnerships (e.g., with Korea Hydro & Nuclear Power), has positioned it as a critical player in the U.S. energy security narrative.

Uranium Sector Rides Geopolitical and Energy Transition Tailwinds
The uranium sector is in a synchronized rally, with Cameco (CCJ) up 3.5% on the same day. North Korea’s enrichment activities and U.S. strategic reserve expansion plans have created a dual narrative of supply constraints and geopolitical urgency. Mercuria’s entry into uranium trading and Amazon/Google’s backing of nuclear energy expansion further validate the sector’s long-term potential. While Centrus leads in HALEU production, Cameco’s dominance in uranium mining and processing underscores the sector’s diversified growth drivers.

Options and Technicals: Navigating the Bullish Momentum
• 200-day MA: $129.41 (far below current price), RSI: 72.66 (overbought), MACD: 22.74 (bullish), Bollinger Bands: $305.00 (upper) vs. $316.43 (current price)
• Short-term bullish trend confirmed by K-line patterns and MACD crossover

Centrus Energy’s technicals scream continuation of the rally. The stock is trading near its 52-week high, with RSI in overbought territory but no immediate reversal signals. Key support levels at $232.84 (20-day MA) and $160.67 (lower Bollinger Band) remain intact. A break above $316.72 could target $330–$350, aligning with the 200-day MA’s 200% retracement. However, the 72.66 RSI warns of potential near-term consolidation.

Top Options Picks:
• LEU20271217C350 (Call, Strike: $350, Expiry: 2027-12-17): Delta: 0.0176 (low sensitivity), Gamma: 0.0553 (moderate sensitivity to price swings), Implied Volatility: 0.17% (extremely low), Leverage Ratio: 63,465.92% (abnormal). This contract is speculative, with a 5% upside scenario yielding zero payoff (ST = $332.25 < $350).
• No second viable option in the provided chain due to low liquidity and extreme leverage ratios. The options market lacks depth, making execution risky. Aggressive bulls should consider tight stop-loss orders near $261.56 (intraday low) to protect gains.

Action Alert: If $316.72 holds, consider a bullish call spread with a $350 strike and a $370 cap to manage risk. Avoid overexposure to single-strike calls given the stock’s volatility and overbought RSI.

Backtest Centrus Energy Stock Performance
Below is an interactive module that shows the complete back-test report for buying Centrus Energy (LEU) whenever its intraday high is at least 15 % above the previous day’s close (Jan-2022 → 25-Sep-2025) and selling at the same-day close.Key takeaways (visible in the module):• Total return: ≈ 383 % • Annualized return: ≈ 76 % • Sharpe ratio: 0.94 • Max drawdown: 63 %Interpretation1. Strong absolute and annualized returns indicate the surge-chasing rule captured several large upside gaps in LEU.2. Risk is high: a 63 % historical drawdown shows extreme volatility—consistent with uranium-related small-cap stocks.3. The strategy trades infrequently (only when a 15 % spike occurs), so long dormant periods may occur.Auto-assumed settings• Exit at same-day close (not specified by user but typical for event-based intraday strategies). • No stop-loss / take-profit rules (user did not request risk controls).Feel free to adjust the exit rule or add risk controls if you’d like further refinement.

Bullish Momentum Unlikely to Subside – Position for the Next Leg
Centrus Energy’s rally is underpinned by a perfect storm of expansion plans, geopolitical tensions, and energy transition tailwinds. While the 72.66 RSI suggests caution, the stock’s alignment with uranium demand and U.S. national security priorities suggests the move is far from over. Investors should monitor the $316.72 level for a breakout confirmation and watch for a potential pullback to $261.56 (intraday low) as a buying opportunity. Cameco’s 3.5% gain highlights the sector’s strength, but Centrus’ industrial-scale HALEU production gives it a unique edge. Act now: Secure a core position with a tight stop or consider a bullish options strategy to capitalize on the next phase of this energy transition story.