NUAI Plummets 34.7% Amid Legal Storm and Short-Seller Barrage: What’s Next for New Era Energy?

Summary
• New Mexico sues NUAI and CEO over alleged oil-and-gas fraud scheme
• Fuzzy Panda short report triggers 6.9% drop on Dec 12, now compounded by today’s 34.7% collapse
• Stock trades at $2.9775, down from $4.56, with intraday range of $2.71–$4.58

New Era Energy (NUAI) has imploded on 2025-12-29, trading at $2.98—a 34.7% plunge from its previous close. The carnage follows a New Mexico Attorney General lawsuit alleging fraudulent asset transfers and environmental neglect, compounded by a Fuzzy Panda short report and a class-action investigation. With turnover at 12.4 million shares and a 52-week low of $0.32 looming, the stock’s survival hinges on legal clarity and operational credibility.

Legal Allegations and Short-Seller Barrage Trigger Freefall
New Mexico’s lawsuit accuses New Era Energy and CEO Everett Willard Gray II of orchestrating a fraudulent oil-and-gas scheme involving shell entities, self-dealing, and abandoned wells. The state alleges Gray transferred high-value wells to affiliated companies while leaving Acacia Operating Company underfunded, forcing it into Chapter 7 bankruptcy. This legal onslaught collided with a Fuzzy Panda short report, which accused the company of spending 2.5x more on stock promotions than on operating its wells. The dual blow—regulatory scrutiny and short-seller skepticism—triggered a liquidity crisis, with the stock collapsing from $4.58 to $2.71 intraday.

Options Playbook: Capitalizing on Volatility Amid Legal Uncertainty
• MACD: 0.0219 (bullish divergence), RSI: 53.76 (neutral), Bollinger Bands: $2.93–$5.25 (oversold)
• 30D MA: $4.11 (price below key support)

NUAI’s technicals suggest a short-term oversold condition, but the stock’s legal risks overshadow any bullish momentum. Two options stand out for aggressive positioning:

• NUAI20260116P2.5 (Put, $2.5 strike, Jan 16 expiry):
- IV: 30.00% (moderate), Leverage: 11.78% (high), Delta: -0.007 (low), Theta: -0.000058 (slow decay), Turnover: $13,502 (liquid)
- Payoff: If price drops to $1.44 (5% downside), payoff = $1.06. Ideal for capitalizing on a sharp legal-driven selloff.

• NUAI20260220C2.5 (Call, $2.5 strike, Feb 20 expiry):
- IV: 45.12% (elevated), Leverage: 5.89% (moderate), Delta: 0.856 (high), Theta: -0.002621 (moderate decay), Turnover: $42,237 (liquid)
- Payoff: If price rebounds to $3.14 (5% upside), payoff = $0.64. Suitable for a short-term bounce trade amid regulatory noise.

Action: Aggressive bears target NUAI20260116P2.5 for a 5% downside play, while bulls eye NUAI20260220C2.5 for a $3.14 rebound. Both require tight stop-losses given the stock’s legal tail risks.

Backtest New Era Energy Stock Performance
The NuShares Ultra Internet ETF (NUAI) has demonstrated resilience following a significant intraday plunge of at least -35% in 2022. In the aftermath of this event, NUAI has shown positive short-to-medium-term performance across various time frames, indicating a recovery and potential growth outlook:1. Short-Term Performance: The 3-day win rate is 50%, meaning half of the time the ETF has risen in the three days following the intraday plunge. The average return over 3 days is 15.35%.2. Medium-Term Performance: The 10-day win rate is higher at 57.14%, suggesting a greater likelihood of positive returns over the longer period. The average return over 10 days is 39.76%.3. Long-Term Performance: The 30-day win rate is 52.38%, with an average return of 58.83% over this period. This indicates that, even over a longer horizon, NUAI has the potential to deliver significant gains following a sharp decline.4. Maximum Return: The maximum return observed following the intraday plunge was 59.47%, which occurred on day 38. This highlights the ETF's ability to bounce back strongly and surpass its pre-plunge levels.In conclusion, while the intraday plunge of -35% in 2022 presented a significant challenge for NUAI, the ETF has generally moved upwards in the following days, months, and years, suggesting that investors may have had reason to be optimistic about its future performance.

Legal Crossroads: NUAI’s Survival Hinges on Q1 Developments
NUAI’s freefall reflects a perfect storm of legal allegations and short-seller skepticism. While technicals hint at a short-term oversold condition, the stock’s path forward depends on Q1 outcomes: a favorable court ruling could stabilize the price, while further regulatory setbacks may push it toward its 52-week low. Exxon Mobil (XOM), the sector leader, rose 1.38% today, underscoring the contrast between NUAI’s turmoil and broader energy sector resilience. Investors must watch for a $3.32 support break or a $4.09 retest. Act now: Short-term traders should prioritize NUAI20260116P2.5 for a 5% downside bet, while long-term holders await legal clarity before committing.