Mammoth Energy's TUSK Soars 20.68%: A Strategic Divestiture Ignites Market Optimism?

Summary
• Mammoth Energy (TUSK) surges 20.68% intraday to $2.13, defying a 52-week low of $1.68.
• $30 million asset sale of Aquawolf LLC sparks speculation about value unlocking.
• RSI at 29.27 signals oversold conditions, while MACD (-0.094) hints at bearish momentum.

Today’s explosive move in TUSK has captivated traders, driven by a strategic divestiture and technical indicators pointing to potential reversal. With the stock trading near its 52-week high of $3.52, investors are weighing the sustainability of this rally against broader sector trends.

Strategic Divestiture Sparks Optimism
Mammoth Energy’s 20.68% intraday surge follows the completion of a $30 million sale of its Aquawolf LLC subsidiary to Qualus LLC. The transaction, which includes $23.5 million in upfront cash and $2.5 million in escrow, marks a strategic pivot to focus on core operations. CFO Mark Layton emphasized the sale’s role in aligning the company’s value with its current share price, suggesting undervaluation. This move has ignited investor confidence, particularly as the subsidiary generated $12 million in revenue through September.

Oil & Gas Equipment & Services Sector Mixed as TUSK Leads
The Oil & Gas Equipment & Services sector remains fragmented, with Schlumberger (SLB) rising 3.87% intraday, outpacing TUSK’s rally. However, TUSK’s sharp move highlights its unique catalyst—a targeted divestiture—while peers like Halliburton (HAL) and Baker Hughes (BKR) trade flat. The sector’s broader context of oversupply and geopolitical tensions contrasts with TUSK’s asset-light strategy.

Options Playbook: Leverage TUSK’s Volatility with Care
• 200-day average: 2.3757 (above) • RSI: 29.27 (oversold) • MACD: -0.094 (bearish) • Bollinger Bands: 2.11 (upper), 1.89 (middle), 1.67 (lower)

Technical indicators suggest TUSK is testing key support/resistance levels. The stock’s 200-day average at $2.3757 acts as a critical resistance, while the 1.89 mid-Bollinger band offers a potential floor. With RSI in oversold territory, a rebound is plausible, but the bearish MACD (-0.094) warns of lingering downward pressure. Aggressive bulls may consider TUSK20260220C2.5 (call) for leverage, while hedgers might use TUSK20260220P2.5 (put) to protect against volatility.

TUSK20260220C2.5 (Call):
• Strike: $2.50 • Expiration: 2026-02-20 • IV: 92.76% (high volatility) • Delta: 0.452 (moderate sensitivity) • Theta: -0.002667 (moderate time decay) • Gamma: 0.426 (high sensitivity to price swings) • Turnover: 230 • Leverage: 8.56%
• IV (high volatility): Suggests market uncertainty. • Delta (0.452): Balances directional exposure. • Gamma (0.426): Amplifies gains if TUSK breaks $2.50.
Payoff: At 5% upside (2.235), intrinsic value = $0.735. • Why: High leverage and gamma make this ideal for a breakout.

TUSK20260220P2.5 (Put):
• Strike: $2.50 • Expiration: 2026-02-20 • IV: 133.44% (extreme volatility) • Delta: -0.469 (moderate bearish bias) • Theta: -0.002427 • Gamma: 0.298 • Turnover: 750 • Leverage: 2.85%
• IV (extreme): Reflects high risk/reward. • Delta (-0.469): Hedges against a pullback. • Gamma (0.298): Offers protection if TUSK dips below $2.50.
Payoff: At 5% downside (1.9285), intrinsic value = $0.5715. • Why: High IV and delta make this a hedge against volatility.

Action: If $2.50 breaks, TUSK20260220C2.5 offers upside potential. For a pullback, TUSK20260220P2.5 provides downside protection.

Backtest Mammoth Energy Stock Performance
I attempted to retrieve TUSK’s daily price data so I could identify every instance (from 2022-01-01 to today) where the share price jumped at least 21 % in one session, but the data-source interface returned an error indicating that TUSK’s base information could not be found (“ get_asset_base_info ”). This normally means the data vendor we connect to does not currently cover that ticker.To keep moving forward we have two options:1. You can supply the dates (or a file) that list each 21 %-plus intraday surge for TUSK since 2022. I can then run the event-driven back-test immediately.2. If you don’t have that list handy, we can try an alternate data source (for example, use a different ticker symbol format such as “TUSK.US” or “Mammoth Energy Services” if you know which feed covers it). Let me know the preferred format or exchange code and I will retry the download.Please let me know which path you’d like to take (or if there’s another ticker you’d like to analyse) and I’ll proceed right away.

TUSK’s Rally: A Catalyst-Driven Bet on Strategic Clarity
Mammoth Energy’s 20.68% surge is a direct result of its strategic divestiture, but sustainability hinges on execution and sector dynamics. The stock’s technicals suggest a volatile path ahead, with the 200-day average ($2.3757) and 52-week high ($3.52) as key benchmarks. Investors should monitor SLB’s 3.87% intraday gain for sector sentiment. For those bullish on TUSK’s pivot, the TUSK20260220C2.5 call offers high leverage, but caution is warranted given the bearish MACD. Watch for a $2.50 breakout or a retest of the 1.89 Bollinger midline.