NuScale Power (SMR) Plummets 3.8% Amid Regulatory Hurdles and Shareholder Sales – What’s Next for the Nuclear Innovator?

Summary
• NuScale Power (SMR) trades at $43.30, down 3.82% intraday
• Landmark 6GW SMR deployment with TVA and ENTRA1 Energy announced
• Dynamic PE ratio at -194.89, signaling valuation concerns
• Options chain shows high implied volatility (124.73%) and leverage ratios (up to 29.86%)

NuScale Power’s stock faces a sharp intraday decline amid a mix of regulatory scrutiny, shareholder sales, and sector-wide volatility. The stock’s 3.82% drop to $43.30 reflects investor caution despite a historic 6GW SMR deployment agreement. Technical indicators and options data suggest heightened short-term uncertainty, while sector peers like Oklo (OKLO) also struggle with a 2.06% decline. This analysis unpacks the catalysts, technical signals, and strategic options for traders navigating the nuclear energy sector’s pivotal moment.

Regulatory Hurdles and Shareholder Sales Weigh on NuScale Power’s Intraday Slide
NuScale Power’s intraday selloff stems from a confluence of factors: regulatory delays in HALEU fuel procurement, shareholder sales by Fluor (its partial owner), and valuation skepticism from analysts. Recent news highlights Fluor’s stake reduction, which has spooked investors about ownership stability and execution risks. Despite the 6GW TVA-ENTRA1 Energy deal, analysts caution that NuScale’s -194.89 dynamic PE ratio and $41.69 Simply Wall St fair value (below current price) suggest overvaluation. The stock’s 3.82% drop to $43.30 reflects a tug-of-war between optimism over commercial traction and doubts about profitability timelines.

Nuclear Sector Volatility Intensifies as OKLO Trails NuScale’s Slide
The nuclear sector is under pressure, with Oklo (OKLO) down 2.06% as of 14:05 ET. Both SMR and OKLO face similar headwinds: valuation concerns, regulatory bottlenecks, and competition from renewables. While NuScale’s 6GW TVA deal is a milestone, Oklo’s Aurora reactor struggles with commercialization delays. The sector’s 52-week high for SMR at $53.50 contrasts with its current 23% pullback, underscoring the fragility of momentum in a capital-intensive industry. Investors are now weighing whether NuScale’s regulatory progress can outpace sector-wide skepticism.

Options Playbook: High-Leverage Puts and Calls for NuScale’s Volatile Outlook
• 200-day MA: $28.89 (far below current price)
• RSI: 56.55 (neutral, but near overbought territory)
• MACD: 0.83 (bullish) vs. signal line 0.45
• Bollinger Bands: $33.72 (lower) to $45.77 (upper)

Key levels to watch: $41.62 (intraday low) and $43.86 (intraday high). Short-term volatility is likely to persist, with the options chain offering high-leverage plays. Two top options:

• SMR20251017P43: Put option with 47.74% leverage ratio, 128.31% IV, and 0.068890 gamma. This contract thrives on a 5% downside (targeting $41.14), offering a potential $1.16 payoff per share. High gamma ensures sensitivity to price swings, while moderate delta (-0.47) balances risk.
• SMR20251017C43: Call option with 19.11% leverage ratio, 124.73% IV, and 0.070875 gamma. A 5% upside to $45.47 could yield $2.17 per share. High turnover (92,836) ensures liquidity, and theta (-0.486) suggests time decay favors aggressive traders.

Aggressive bulls may consider SMR20251017C43 into a bounce above $43.86, while bears should eye SMR20251017P43 if support at $41.62 breaks. Both contracts capitalize on NuScale’s 15%+ implied volatility, making them ideal for short-term directional bets.

Backtest NuScale Power Stock Performance
Below is an interactive back-test dashboard summarising how SMR performs after a ≥4 % daily drop since 2022. Feel free to explore the visual report; key assumptions and risk-control settings are documented inside.Insights to keep in mind (beyond the numbers shown):• While the strategy has delivered outsized cumulative returns, it also endured sizable drawdowns—typical for “buy-the-dip” approaches on a volatile small-cap. • Tightening the stop-loss or shortening the max-holding window could materially reduce risk at the cost of return; feel free to re-run with alternative parameters. • Liquidity in SMR has improved, yet execution slippage may still erode edge—use limit orders or partial fills where possible.Let me know if you’d like sensitivity tests or a parameter sweep.

NuScale at Crossroads: Watch 41.62 Support and Sector Sentiment Shifts
NuScale Power’s 3.8% intraday drop highlights the precarious balance between its groundbreaking 6GW TVA deal and execution risks. While the stock’s 52-week high of $53.50 remains a distant target, immediate focus should be on the $41.62 support level and the nuclear sector’s broader sentiment. With Oklo (OKLO) down 2.06%, sector-wide jitters persist. Traders should prioritize high-gamma options like SMR20251017P43 for bearish moves and monitor regulatory updates on HALEU fuel. If NuScale’s 6GW rollout gains traction, the stock could rebound toward $45.77 (Bollinger upper band), but a breakdown below $41.62 would signal deeper trouble. Act now: Short-term options and tight stop-losses are key in this high-volatility environment.