NuScale Power Plunges 11%: What's Fueling the Sudden Slide?

Summary
• NuScale Power (SMR) slumps 11.15% to $18.86, its lowest since November 2025
• Intraday range of $18.55–$20.86 highlights sharp volatility amid sector headwinds
• Options chain surges with 17.5–20 strike puts and calls trading at 85–95% implied volatility
• Sector peers like SLB (Schlumberger) dip 2.7%, signaling broader energy equipment pressure

Today’s selloff in NuScale Power has sent shockwaves through the energy equipment sector, with the stock collapsing to a 52-week low of $11.08. The move coincides with a surge in put options activity and a sharp divergence from its 200-day moving average of $30.57. As the DOE’s $800M SMR funding announcement and coal plant extensions dominate sector headlines, traders are scrambling to decipher whether this is a short-term correction or a structural shift in investor sentiment.

Regulatory Uncertainty and Sector Volatility Weigh on NuScale
NuScale’s freefall stems from a confluence of sector-specific and company-specific pressures. The U.S. Department of Energy’s $800M allocation for Holtec and TVA’s SMR projects has intensified competition in the small modular reactor space, casting doubt on NuScale’s market share potential. Meanwhile, the DOE’s extension of the J.H. Campbell coal plant’s operations until 2025 underscores regulatory favor for legacy thermal assets, which could delay clean energy transitions. Compounding these factors, NuScale’s technical profile shows a breakdown below its 30-day moving average of $25.19 and a bearish engulfing candle pattern, amplifying short-term bearish momentum.

Energy Equipment & Services Sector Under Pressure as SLB Drags
The Energy Equipment & Services sector is broadly underperforming, with Schlumberger (SLB) down 2.7% on concerns about oilfield services demand. NuScale’s 11.15% drop outpaces the sector’s average decline, reflecting its unique exposure to nuclear energy policy shifts. While SLB’s decline is tied to oil price stagnation, NuScale’s selloff is driven by direct regulatory competition and a deteriorating technical setup. The sector’s 52-week high of $57.42 (NuScale) contrasts sharply with its 52-week low of $11.08, highlighting the sector’s extreme volatility.

Options Playbook: Capitalizing on NuScale's Volatility
• MACD: -2.85 (bearish divergence from signal line -3.71)
• RSI: 58.76 (oversold territory approaching 50)
• Bollinger Bands: Price at $18.86 (near lower band $17.52)
• 200-day average: $30.57 (price 37% below)
• 30-day support: $21.29–$21.83 (broken)

Technical indicators suggest NuScale is in a bearish consolidation phase, with key support levels at $17.50 (lower Bollinger Band) and $18.50 (psychological round number). The 58.76 RSI reading indicates oversold conditions, but the -2.85 MACD histogram suggests momentum remains bearish. Traders should monitor the 200-day average ($30.57) as a long-term resistance level and the 30-day support range ($21.29–$21.83) for potential short-term bounces.

Top Options Picks:
• SMR20251219P19 (Put):
- Strike: $19 | Expiry: 2025-12-19 | IV: 89.98% | LVR: 16.75% | Delta: -0.5096 | Theta: -0.0070 | Gamma: 0.1596 | Turnover: $105,645
- High leverage ratio (16.75%) and gamma (0.1596) suggest strong sensitivity to price swings. IV at 89.98% reflects elevated volatility expectations. Theta of -0.0070 indicates minimal time decay, preserving value into expiry.
- Payoff Calculation: At 5% downside (ST = $17.90), payoff = max(0, $19 - $17.90) = $1.10 per share. With 16.75% leverage, this translates to a 6.5% return on capital.

• SMR20251219C19 (Call):
- Strike: $19 | Expiry: 2025-12-19 | IV: 95.19% | LVR: 19.74% | Delta: 0.4939 | Theta: -0.1089 | Gamma: 0.1509 | Turnover: $123,996
- Moderate delta (0.4939) and high gamma (0.1509) position this as a directional play. IV at 95.19% suggests market pricing in sharp moves. Theta of -0.1089 indicates aggressive time decay, favoring near-term catalysts.
- Payoff Calculation: At 5% downside (ST = $17.90), payoff = max(0, $17.90 - $19) = $0. Theta decay would erode value, but gamma could offset if price rebounds.

Trading Outlook: Aggressive bears should prioritize the SMR20251219P19 put for its leverage and gamma exposure. For directional bets, the SMR20251219C19 call offers a high-risk, high-reward setup if NuScale breaks above $19.50. Position sizing should reflect the 89.98–95.19% IV range, which signals elevated volatility but not extreme levels.

Backtest NuScale Power Stock Performance
The strategy of buying the SMR ETF after a -11% intraday plunge has shown favorable performance, with win rates and returns consistently increasing over 3, 10, and 30 days. The backtest data indicates that this approach has been successful in capturing positive returns following the substantial drop, with the maximum return during the backtest period reaching 18.41% over 30 days.

Act Now: NuScale's Volatility Presents High-Reward Opportunities
NuScale’s 11.15% drop has created a high-conviction trading environment, with technical indicators and options activity pointing to a critical juncture. The stock’s breakdown below key support levels and sector-wide regulatory shifts suggest further downside risk, but oversold RSI and Bollinger Band extremes hint at potential rebounds. Traders should prioritize the SMR20251219P19 put for bearish exposure and monitor the SMR20251219C19 call for a short-term reversal play. With sector leader Schlumberger (SLB) down 2.7%, the Energy Equipment & Services space remains fragile. Watch for a break below $17.50 or a regulatory update on SMR funding to confirm the next directional move.