NuScale Power Surges 4.58%—Is the Nuclear Sector Fueling a Breakout?

Summary
• NuScale Power (SMR) rockets 4.58% to $36.77, piercing intraday highs of $37.20
• Turnover surges to 6.84 million shares, outpacing 6.41% of float
• RSI plummets to 21.77, signaling oversold conditions
• Options frenzy: 702 contracts traded for the 37-strike call, 513 for the 38-strike

NuScale Power’s explosive 4.58% rally has ignited a firestorm of speculation. With the stock clawing toward its 52-week high of $53.50, traders are scrambling to decode whether technical rebounds or sector tailwinds are driving the surge. The nuclear power sector, however, remains muted, with BlackRock Utilities (BUI) up just 0.41%. This divergence hints at a stock-specific catalyst—or a short-covering frenzy.

Oversold RSI and Options Gamma Frenzy Ignite Short-Term Rally
NuScale Power’s 4.58% intraday surge is a textbook technical rebound from extreme oversold conditions. The RSI of 21.77—a level typically associated with short-term bottoms—has triggered algorithmic buying and gamma-driven options demand. The 37-strike call (SMR20250905C37) saw 702 contracts traded, with 100,183 shares of turnover, indicating heavy institutional participation. Meanwhile, the 38-strike call (SMR20250905C38) attracted 513 contracts and 51,387 shares of turnover, suggesting a coordinated push to test the 52-week high. The stock’s price action—climbing from $35.61 to $37.20—aligns with the 38.76 Bollinger Middle Band, confirming a breakout from a multi-week consolidation.

Gamma-Driven Call Options and ETF Neutral Playbook
• 200-day average: 26.62 (well below current price)
• RSI: 21.77 (oversold)
• MACD: -2.16 (bearish), Signal Line: -1.80
• Bollinger Bands: 28.71–48.82 (current price at 36.77, near lower third)

Key levels to watch: The 38.76 Bollinger Middle Band acts as a dynamic pivot. A close above $37.20 (intraday high) would target the 48.82 upper band. Short-term bulls should focus on the 37-strike call (SMR20250905C37) and 38-strike call (SMR20250905C38), both of which exhibit high gamma and moderate delta, ideal for a sharp move.

Top Option 1: SMR20250905C37
• Code: SMR20250905C37
• Type: Call
• Strike: $37.00
• Expiration: 2025-09-05
• IV: 72.61% (moderate)
• Leverage Ratio: 24.40%
• Delta: 0.4888 (moderate)
• Theta: -0.1697 (high time decay)
• Gamma: 0.0956 (high sensitivity)
• Turnover: 100,183 shares
• IV: Implied volatility suggests market expects 72.61% price swings
• Leverage Ratio: 24.40% indicates 24x price sensitivity to underlying
• Delta: 0.4888 means 48.88% probability of expiring in the money
• Theta: -0.1697 daily decay, manageable for short-term plays
• Gamma: 0.0956 shows high sensitivity to price changes

Why it stands out: High gamma and moderate delta make this ideal for a sharp move. A 5% upside to $38.61 would yield a payoff of $1.61 per contract (max(0, 38.61 - 37.00)).

Top Option 2: SMR20250905C38
• Code: SMR20250905C38
• Type: Call
• Strike: $38.00
• Expiration: 2025-09-05
• IV: 71.59% (moderate)
• Leverage Ratio: 33.89%
• Delta: 0.3947 (moderate)
• Theta: -0.1510 (high time decay)
• Gamma: 0.0936 (high sensitivity)
• Turnover: 51,387 shares
• IV: 71.59% implies 71.59% expected price swings
• Leverage Ratio: 33.89% indicates 33x price sensitivity
• Delta: 0.3947 means 39.47% probability of expiring in the money
• Theta: -0.1510 daily decay, manageable for short-term plays
• Gamma: 0.0936 shows high sensitivity to price changes

Why it stands out: High gamma and leverage ratio for aggressive bullish bets. A 5% upside to $38.61 would yield a payoff of $0.61 per contract (max(0, 38.61 - 38.00)).

Hook: Aggressive bulls may consider SMR20250905C37 into a bounce above $37.20.

Backtest NuScale Power Stock Performance
Query limit exceeded.

Breakout or False Dawn? Watch $37.20 and Gamma-Driven Volatility
NuScale Power’s 4.58% surge is a gamma-fueled technical rebound, but sustainability hinges on breaking above $37.20 and holding the 38.76 Bollinger Middle Band. The 37-strike call (SMR20250905C37) and 38-strike call (SMR20250905C38) offer high-gamma exposure to a potential breakout. However, the nuclear sector’s muted performance—BlackRock Utilities (BUI) up just 0.41%—suggests this is a stock-specific trade. Watch for $37.20 breakdown or regulatory reaction.