NuScale Power (SMR) Surges 12.9% on Historic TVA SMR Partnership: Is This the Catalyst for a New Energy Era?

Summary
• NuScale Power (SMR) rockets 12.89% to $42.04, hitting an intraday high of $43.11
• Partnership with ENTRA1 Energy and TVA to deploy 6 GW of NuScale SMRs marks largest U.S. SMR program
• Options frenzy: 21.3% turnover rate and 22.7M shares traded as bulls flock to call options
• Analysts raise price targets amid surging demand for carbon-free baseload power in AI/datacenter sectors

NuScale Power’s stock erupted on Wednesday as the company announced a landmark agreement with ENTRA1 Energy and the Tennessee Valley Authority to deploy up to 6 gigawatts of small modular reactor (SMR) capacity. The 12.89% intraday surge, fueled by regulatory tailwinds and energy security narratives, has ignited a frenzy in the options market. With the stock trading near its 52-week high of $53.50, investors are scrambling to position for a potential breakout in the nuclear energy sector.

TVA-ENTRA1 SMR Partnership Ignites Energy Security Narrative
NuScale’s 12.89% surge was catalyzed by its announcement supporting ENTRA1 Energy’s agreement with TVA to deploy six ENTRA1 Energy Plants™ powered by NuScale’s NRC-approved SMRs. This 6 GW program—described as the largest SMR deployment in U.S. history—aligns with President Trump’s energy security agenda and addresses surging demand from AI datacenters, semiconductor manufacturing, and critical infrastructure. The partnership leverages NuScale’s modular design, which offers scalability and construction efficiency, while ENTRA1 handles financing and development. Analysts highlight the strategic value of NuScale’s exclusive global commercialization rights with ENTRA1, positioning the company to dominate the SMR market as the U.S. accelerates decarbonization efforts.

Nuclear Sector Gains Momentum as SMR Technology Gains Traction
The nuclear energy sector, represented by peers like GE Vernova (GEV) and NANO Nuclear Energy (NNE), has seen mixed performance. While GEV fell 1.62% on concerns over legacy energy transitions, NNE rose 1.89% on speculative SMR interest. NuScale’s 13.3% intraday gain outperformed the S&P 500’s 0.24% rise, reflecting its unique positioning in advanced nuclear tech. The sector’s long-term potential is bolstered by government incentives and the need for reliable baseload power, but NuScale’s regulatory head start and TVA partnership give it a distinct edge.

Options Playbook: Capitalizing on NuScale’s Volatility with Gamma-Driven Calls
• 200-day MA: $26.81 (well below current price)
• RSI: 47.11 (neutral, not overbought)
• MACD: -1.74 (bullish crossover pending)
• Bollinger Bands: 29.66–44.91 (current price near upper band)

NuScale’s technicals suggest a continuation of its bullish momentum, with key resistance at $44.91 (Bollinger upper band) and support at $37.28 (20-day MA). The 13.3% intraday gain has pushed the stock into overbought territory on volume, but the 47.11 RSI and -1.74 MACD indicate a potential breakout. For leveraged exposure, the SMR20250912C42 and SMR20250912C44 call options stand out:

• SMR20250912C42 (Call, $42 strike, 9/12 expiry):
- IV: 85.87% (high)
- Leverage: 17.83%
- Delta: 0.5249 (moderate)
- Theta: -0.2026 (high time decay)
- Gamma: 0.0668 (high sensitivity)
- Turnover: 3.56M (liquid)
- Payoff (5% upside): $0.61/share
- Why it works: High gamma and leverage amplify gains if the stock breaks above $42, while high IV ensures premium resilience.

• SMR20250912C44 (Call, $44 strike, 9/12 expiry):
- IV: 87.99% (high)
- Leverage: 26.19%
- Delta: 0.3994 (moderate)
- Theta: -0.1826 (high time decay)
- Gamma: 0.0633 (high sensitivity)
- Turnover: 2.91M (liquid)
- Payoff (5% upside): $0.61/share
- Why it works: Aggressive leverage and gamma make this ideal for a breakout above $44.91, with IV providing a buffer against time decay.

Action: Aggressive bulls should target SMR20250912C42 into a close above $42.50. For a longer-term play, SMR20250919C38 offers 7.91% leverage with lower IV (84.20%) and higher delta (0.7387), ideal for a pullback setup.

Backtest NuScale Power Stock Performance

Breakout or Bubble? NuScale’s SMR Gambit Enters Critical Phase
NuScale’s 12.89% surge hinges on its ability to execute the TVA-ENTRA1 SMR program, which could redefine its role in the energy transition. While the stock’s 13.3% intraday gain has pushed it closer to its 52-week high of $53.50, technicals suggest a test of the $44.91 Bollinger upper band. Investors should monitor the SMR20250912C42 call option for a breakout signal and watch the sector leader GE Vernova (GEV), which fell 1.62% today, for broader nuclear sector sentiment. Act now: Buy SMR20250912C42 if $42.50 is breached, or short-term bulls can target SMR20250919C38 for a pullback trade. The next 72 hours will determine whether this is a sustainable inflection point or a volatility-driven spike.