Centrus Energy Surges 12.26% on Intraday Rally – What’s Fueling the Momentum?

Summary
• Centrus Energy (LEU) trades at $207.99, up 12.26% from its 2025-08-26 open of $192.1
• Intraday high hits $211.50, nearing 52-week high of $264.9
• Turnover of 2.04 million shares, with 12.17% turnover rate
• MACD (-7.36) and RSI (37.48) signal short-term bullish divergence
Centrus Energy’s intraday surge has captured market attention, with the uranium stock climbing over 12% in a single session. The move defies its 52-week low of $34.91 and positions it near key technical resistance levels. Traders are now scrutinizing whether this rally is a breakout or a volatile correction.

Technical Divergence Ignites Short-Term Bullish Sentiment
The 12.26% intraday rally in LEU is driven by a combination of technical divergence and speculative positioning. The RSI (37.48) has entered oversold territory, historically signaling potential rebounds, while the MACD (-7.36) remains below its signal line (-3.23), indicating a bearish crossover. However, the narrowing histogram (-4.12) suggests weakening bearish momentum. Meanwhile, the price has surged to the upper Bollinger Band ($245.71) and is now trading above the 30D moving average ($212.36), creating a short-term bullish bias. This divergence between momentum indicators and price action often precedes sharp reversals in volatile stocks.

Options Playbook: Leveraging LEU’s Volatility with Precision
• Technical Indicators:
- 30D MA: $212.36 (above current price)
- 200D MA: $113.66 (far below)
- RSI: 37.48 (oversold)
- MACD: -7.36 (bearish crossover)
- Bollinger Bands: $245.71 (upper), $159.58 (lower)

Trading Setup: LEU’s price is perched near the 30D MA and upper Bollinger Band, suggesting a potential continuation of the rally if it breaks above $212.36. A close above $214.58 (30D support/resistance) would validate the bullish case. The RSI’s oversold reading implies a short-term rebound is likely, but the MACD’s bearish crossover warns of potential mean reversion.

Top Options:
• LEU20260618C220
- Type: Call
- Strike: $220
- Expiration: 2026-06-18
- IV: 0.86% (low)
- LVR: 41718.00% (extreme)
- Delta: 0.009173 (near-zero)
- Theta: -0.000343 (slow decay)
- Gamma: 0.015188 (moderate)
- Turnover: 0
- IV (Implied Volatility): Suggests low expected price swings
- LVR (Leverage Ratio): Extreme leverage amplifies risk/reward
- Delta (Price Sensitivity): Minimal directional exposure
- Gamma (Delta Sensitivity): Moderate responsiveness to price changes
- Turnover: No liquidity, limiting practicality
- Why it stands out: The 41718% leverage ratio is astronomically high, but the near-zero delta and low turnover make this contract unsuitable for most traders. A 5% upside scenario (targeting $218.39) would yield a call payoff of $8.39 per contract, but execution risks are prohibitive.

Hook: Aggressive bulls may consider a tight stop-buy above $214.58 to capitalize on the 30D MA breakout.

Backtest Centrus Energy Stock Performance
The LEU ETF experienced a significant surge, with a maximum intraday increase of 12%, leading to a total strategy return of 2,412.88% over the backtested period. This outperformed the benchmark return of 81.52%, resulting in a 2,331.35% excess return. The strategy had a maximum drawdown of 0%, a Sharpe ratio of 1.04, and a volatility of 89.87%.

Act Now: LEU’s 30D MA Breakout Could Signal a New Bull Phase
Centrus Energy’s 12.26% intraday surge has created a critical juncture near the 30D MA ($212.36) and upper Bollinger Band ($245.71). While the RSI’s oversold reading supports a short-term rebound, the MACD’s bearish crossover warns of potential volatility. Traders should monitor the $214.58 level for confirmation of a bullish continuation. The sector leader Urban Edge (UE) remains flat at +0.19%, indicating this move is stock-specific. A close above $212.36 would validate the bullish case, while a retest of the 200D MA ($113.66) would signal a deeper correction. Action: Watch for a breakout above $214.58 or a breakdown below $192.1 (today’s open) to define the next directional move.