Nextpower (NXT) Surges 5.4% on Saudi Solar JV Breakthrough: Is This the Catalyst for a New Bull Run?

Summary
• Nextpower (NXT) rockets 5.4% to $99.84, hitting a 2026 intraday high of $100.94
• Joint venture with Abunayyan Holding in Saudi Arabia to build 12 GW solar tracker plants
• Options volume spikes, with 49 contracts traded for the $100 call expiring Feb 20
• Solar sector ETFs like TAN and ICLN rally 1.4%–1.9%, aligning with NXT’s momentum

Nextpower’s stock is surging on the back of a landmark joint venture in Saudi Arabia, which could redefine its growth trajectory. The 12 GW Jeddah manufacturing plant, tied to Vision 2030, has ignited investor optimism. With technical indicators flashing bullish signals and leveraged ETFs surging, traders are scrambling to position for the next leg of this solar energy story.

Saudi Solar JV Ignites Nextpower's Bullish Momentum
Nextpower’s 5.4% intraday rally is directly tied to the completion of its joint venture with Abunayyan Holding, forming Nextpower Arabia. This partnership will build utility-scale solar plants across the MENA region and establish a 12 GW tracker manufacturing facility in Jeddah by Q2 2026. The project aligns with Saudi Arabia’s Vision 2030 industrialization goals and creates a localized supply chain supporting 2,000 jobs. Investors are interpreting this as a strategic expansion that could offset U.S. policy risks and tariff pressures, while the October revenue guidance raise to $3.275–$3.475 billion provides a near-term catalyst ahead of the Jan 27 earnings report.

Solar Sector Rally Gains Steam as Nextpower Joins First Solar's Surge
The solar sector is in sync with NXT’s momentum, led by First Solar (FSLR) surging 4.46%. Leveraged ETFs like Invesco Solar ETF (TAN) and iShares Global Clean Energy ETF (ICLN) are up 1.4%–1.9%, reflecting broad-based optimism. NXT’s 12 GW Saudi venture positions it to compete with FSLR’s U.S.-focused growth while diversifying into high-growth markets. The sector’s technical strength—bolstered by China’s 11 GW July solar additions and Utah’s 200 MW battery project approval—suggests NXT’s rally is part of a larger trend.

Leverage the Solar Surge: ETFs and Options to Capitalize on NXT's Momentum
• MACD: 1.44 (above signal line 0.51), RSI: 55.26 (neutral), 200D MA: $69.58 (well below price)
• Bollinger Bands: Price at $99.84 near upper band ($98.33), suggesting overbought conditions
• Key Levels: 200D MA ($69.58) as strong support; 52W high ($112.74) as near-term resistance

Top Options Picks:
• NXT20260220C100 (Call):
- Strike: $100, Expiry: Feb 20, IV: 68.11%, Leverage: 11.36%, Delta: 0.55, Theta: -0.1677, Gamma: 0.0183, Turnover: 44,070
- IV (high volatility), Leverage (amplifies gains), Delta (moderate sensitivity), Theta (rapid time decay), Gamma (responsive to price swings)
- This call offers a 38.06% price change potential if NXT breaks above $100, with high gamma ensuring responsiveness to further gains. Ideal for aggressive bulls.

• NXT20260220C105 (Call):
- Strike: $105, Expiry: Feb 20, IV: 68.32%, Leverage: 14.83%, Delta: 0.46, Theta: -0.1607, Gamma: 0.0183, Turnover: 50,698
- IV (high volatility), Leverage (amplifies gains), Delta (moderate sensitivity), Theta (rapid time decay), Gamma (responsive to price swings)
- With 40.60% price change potential and high liquidity, this contract balances risk and reward. Best for traders expecting a sustained rally beyond $105.

Payoff Projections:
- NXT20260220C100: 5% upside to $104.83 yields $4.83 per contract
- NXT20260220C105: 5% upside to $104.83 yields $9.83 per contract

Action Alert: Aggressive bulls should buy NXT20260220C100 into a break above $100.50. Conservative traders may scale into NXT20260220C105 as a hedge against volatility.

Backtest Nextpower Stock Performance
The backtest of Nexstar Media (NXT) after a 5% intraday surge from 2022 to now is not currently available. However, we can learn from the backtests of Allstate Corp. (ALL) and Occidental Petroleum (OXY) to understand the performance of intraday strategies in general.1. Allstate Corp. (ALL): The backtest of ALL after a 5% intraday surge from 2022 to now showed a solid absolute and risk-adjusted return while keeping drawdowns moderate. The strategy was triggered only on true ≥5% surge days, making the approach easy to implement alongside other positions.2. Occidental Petroleum (OXY): The backtest of OXY after a 5% intraday surge from 2022 to now also produced a solid absolute and risk-adjusted return while keeping drawdowns moderate. The strategy had a stop-loss of 8% and a take-profit of 20%, which were auto-set to balance downside risk. The maximum holding days were set at 10, limiting the trade frequency to only occur on significant surge days.3. Insights from Backtesting: - Robustness and Risk: Backtesting over a longer period provides more dates to assess the strategy's robustness and view risks and sharpe ratios accurately. However, recent market conditions can affect the strategy's performance, and long backtests may not reflect current market dynamics. - Performance Metrics: Understanding backtest results is crucial for evaluating strategy performance. Metrics like overall profit and maximum drawdown help assess the strategy's profitability and risk. The return over max drawdown ratio provides insight into the strategy's ability to recover from its worst performance period. - Optimism vs. Reality: Backtesting is about the past, and while it can provide valuable insights, it may not perfectly predict future performance due to changing market conditions. Therefore, it's important to analyze recent market trends and adjust strategies accordingly.In conclusion, while specific backtest data for NXT is not available, the backtests of ALL and OXY demonstrate that intraday strategies can produce solid returns while managing risk. The performance of NXT is likely to be similarly moderate, given similar market conditions and strategy parameters.

Nextpower’s Solar-Powered Surge: Position for a 2026 Breakout
Nextpower’s Saudi venture and technical strength position it as a key player in the global solar transition. With First Solar (FSLR) surging 4.46% and leveraged ETFs like TAN rallying 1.4%, the sector is primed for further gains. Traders should watch the $100.50 breakout level and the Jan 27 earnings report for confirmation. For now, the NXT20260220C100 and C105 options offer high-leverage entry points. If the 52W high of $112.74 is breached, this could mark the start of a multi-month bull run.