NuScale Power Plummets 9.7%: What's Fueling the Sudden Drop in a Nuclear Sector on the Rise?

Summary
• NuScale Power (SMR) slumps to $32.69, a 9.7% intraday plunge from its $38.69 high
• Turnover surges to 31.6 million shares, signaling intense short-term volatility
• Sector peers like Exelon (EXC) edge up 0.53%, highlighting divergent nuclear stock dynamics

NuScale Power’s dramatic intraday collapse has investors scrambling for answers as the nuclear sector buzzes with life extension announcements and new reactor projects. With the stock trading near its 52-week low of $11.08, the move starkly contrasts with broader nuclear industry optimism. The sharp selloff, amplified by a 25.9% turnover rate, raises urgent questions about catalysts and technical triggers.

Bearish Breakdown Amid Sector Optimism
NuScale Power’s freefall stems from a confluence of technical exhaustion and speculative unwinding. The stock’s 52-week range of $11.08–$57.42 has narrowed to a 200-day average of $29.68, with current price action piercing key support levels. Options data reveals a liquidity vacuum: the SMR20251031P35 put option, with 128,317 turnover and 132% price change, indicates aggressive bearish positioning. Meanwhile, sector news about UK plant extensions and Polish SMR projects fails to offset NuScale’s underperformance, suggesting sector-wide optimism isn’t translating to its valuation.

Nuclear Sector Gains Momentum as NuScale Diverges
While NuScale tumbles, the nuclear sector shows resilience. Exelon (EXC) rises 0.53%, buoyed by regulatory clarity and grid demand. Sector news highlights UK’s 12-month plant extensions, Polish SMR site selection, and AI-driven licensing advancements. NuScale’s 9.7% drop contrasts sharply with this backdrop, pointing to company-specific pressures—likely tied to its unprofitable model (dynamic PE of -155.87) and speculative short-term positioning—rather than macro-sector shifts.

Options Playbook: Capitalizing on NuScale’s Volatility
• 200-day average: $29.68 (below current price)
• RSI: 52.09 (neutral)
• Bollinger Bands: 32.51–49.85 (price near lower band)
• MACD: 1.49 (bullish) vs. signal line 1.52 (bearish)

NuScale’s technicals suggest a short-term bearish bias with potential for mean reversion. Key levels to watch: 32.51 (lower Bollinger), 38.89 (30D support), and 16.68 (200D support). The SMR20251031P35 put (strike $35, 10/31 expiry) stands out with 161.76% implied volatility, 8.13% leverage ratio, and 128,317 turnover. Its -0.4589 delta and -0.0689 theta indicate strong bearish exposure with manageable time decay. For aggressive short-term bets, the SMR20251031P36 put (strike $36, 161.76% IV, 8.13% leverage) offers 141,768 turnover and -0.4889 delta, ideal for a 5% downside scenario (projected price $32.89) yielding $3.11 per contract. Both options balance liquidity and directional risk, making them prime candidates for volatility-driven strategies.

Backtest NuScale Power Stock Performance
Below is your interactive event-driven back-test dashboard. It shows how NuScale Power (SMR.N) shares behaved in the 30 trading days after every –10 % intraday plunge from 1 Jan 2022 to 22 Oct 2025 (34 events in total). How to read it• Click the module to explore cumulative returns, win-rate curves and detailed day-by-day statistics. • The table inside the module lists win ratios and average excess returns vs. benchmark for each holding day (1-30 days). Key takeaways1. Shock effect: On the first trading day after a ≥10 % intraday plunge, SMR averages –2.6 % vs. +0.3 % for the benchmark—statistically significant downside.2. Recovery tendency: Losses mean-revert within a week; by day 10 the average event return turns positive (+2.4 %) and continues to improve, peaking near +11 % around day 26-30.3. Hit ratio: Win-rate climbs from ~35 % on day 1 to ~58-64 % after two to three weeks, indicating improving odds of a rebound trade.4. Relative performance: From day 7 onward, SMR’s post-plunge bounce generally outpaces the benchmark, suggesting a potential contrarian opportunity for medium-term traders. Methodology & assumptions• Event definition: Trading days where intraday low ≤ 90 % of the prior close (–10 % plunge). • Data: Official daily OHLC for SMR.N, 1 Jan 2022 – 22 Oct 2025. • Back-test horizon: 30 trading days after each event, using daily close prices, no transaction costs or risk controls applied. • Benchmark: Equal-time window return of SMR’s own price path for excess-return comparison.Feel free to drill into the dashboard and let me know if you’d like deeper cuts (e.g., sub-periods, different thresholds, or adding stop-loss/take-profit rules).

Act Now: NuScale’s Volatility Presents High-Reward Opportunities
NuScale Power’s 9.7% drop has created a high-conviction trading window. With technicals pointing to a test of 32.51 support and options liquidity surging, aggressive traders should prioritize the SMR20251031P35 and P36 puts. Meanwhile, Exelon’s 0.53% gain underscores sector resilience, offering a contrast to NuScale’s struggles. Investors must act swiftly: a breakdown below 32.51 could trigger a cascade to 16.68, while a rebound above 38.89 might reignite speculative buying. Watch for catalysts in upcoming NRC updates or sector-wide funding announcements to determine whether this is a buying opportunity or a warning signal.