NuScale Power (SMR) Surges 13.3% on Military Nuclear Initiative and Strategic Partnership Hype – What’s Next?

Summary
• U.S. Army’s Janus Program fuels speculation about NuScale’s role in global microreactor deployment
• ENTRA1 Energy’s 6GW partnership with TVA sparks optimism for SMR commercialization
• Stock trades at 13.3% intraday gain, hitting $44.48 high amid surging options volume

NuScale Power (SMR) has ignited a frenzy in the nuclear energy sector, surging 13.3% to $43.86 as of 4:56 PM ET. The rally follows a landmark U.S. Army initiative to deploy small modular reactors (SMRs) and a reported 6GW partnership with ENTRA1 Energy and the Tennessee Valley Authority (TVA). With the stock trading near its 52-week high of $57.42 and a 17.9% turnover rate, investors are betting on NuScale’s potential to capitalize on the global nuclear renaissance.

Military Nuclear Initiative and Strategic Partnership Drive NuScale’s Rally
NuScale’s explosive move stems from two pivotal developments: the U.S. Army’s Janus Program, which aims to deploy commercially operated microreactors at military bases by 2028, and a 6GW SMR deployment agreement with ENTRA1 Energy and TVA. The Army’s initiative positions NuScale’s NRC-approved 77 MWe modules as a prime candidate for secure, long-duration power at remote installations. Meanwhile, the TVA partnership—described as the largest SMR deployment in U.S. history—validates NuScale’s technology as a scalable solution for energy-intensive sectors like AI and semiconductors. These catalysts have amplified speculative buying, with options volume surging and broker upgrades fueling short-term bullish momentum.

Industrial Machinery Sector Mixed as NuScale Outperforms
The Industrial Machinery sector (led by GE Vernova, down 1.43% intraday) has shown mixed performance, with NuScale’s 13.3% rally starkly contrasting the sector’s broader caution. While peers like GE Vernova and Westinghouse Electric face regulatory and cost hurdles, NuScale’s NRC-certified design and strategic partnerships have positioned it as a first-mover in the SMR race. The stock’s surge reflects investor appetite for high-growth, policy-driven plays in the energy transition, even as traditional industrial firms grapple with margin pressures.

Options and ETFs for NuScale’s Volatile Move
• MACD: -0.102 (bearish), Signal Line: 0.729, Histogram: -0.832 (divergence)
• RSI: 49.4 (neutral), Bollinger Bands: $31.82–$50.06 (wide range)
• 200D MA: $29.99 (below current price), 30D MA: $40.58 (support)

NuScale’s technicals suggest a volatile, overextended move. The stock is trading near the upper Bollinger Band ($50.06) but faces resistance at its 52-week high of $57.42. A breakout above $44.50 could trigger a retest of $50, while a pullback to the 30D MA ($40.58) may attract buyers. The XLE (Energy Select Sector SPDR Fund) and SMR20251107C42 call options offer leveraged exposure to the nuclear energy theme.

Top Options Picks:
1. SMR20251107C42 (Call, $42 strike, Nov 7 expiry):
• IV: 157.64% (high volatility)
• Delta: 0.613 (moderate sensitivity)
• Theta: -0.285 (rapid time decay)
• Gamma: 0.032 (price sensitivity to movement)
• Turnover: 81,854 (high liquidity)
• Leverage Ratio: 7.81%
This call option offers a 154.55% price change potential if NuScale breaks above $44.50. A 5% upside to $46.05 would yield a payoff of $4.05 per contract, translating to a 129% return on the $3.13 premium.

2. SMR20251107P43 (Put, $43 strike, Nov 7 expiry):
• IV: 142.81% (moderate volatility)
• Delta: -0.422 (moderate bearish bias)
• Theta: -0.111 (slow time decay)
• Gamma: 0.036 (price sensitivity to movement)
• Turnover: 223,202 (high liquidity)
• Leverage Ratio: 11.21%
This put option provides downside protection if NuScale’s rally falters. A 5% downside to $41.67 would yield a $1.33 payoff, a 122% return on the $1.09 premium. Aggressive bulls may consider SMR20251107C42 into a breakout above $44.50.

Backtest NuScale Power Stock Performance
Below is the interactive event-study dashboard. Key take-aways (concise, non-duplicated):• After a ≥ 13 % daily surge, SMR tends to mean-revert in the very short term (-2.3 % next day), while medium-term (≈ 2–4 weeks) performance gradually improves and turns mildly positive. • The pattern is not statistically strong at conventional confidence levels, so trading purely on this signal carries considerable uncertainty. • We proxied an “intraday” 13 % move with close-to-close returns because high-frequency trade data were not available in the public domain. • Default settings: 30-day look-ahead window and the full sample 2022-01-01 – 2025-10-28. Feel free to explore the chart for detailed day-by-day metrics. If you’d like a different window, threshold, or stop-loss simulation, just let me know!

NuScale’s Momentum Hinges on Execution – Watch for $44.50 Breakout
NuScale’s 13.3% surge hinges on its ability to convert speculative enthusiasm into concrete contracts and project milestones. While the Janus Program and TVA partnership validate its SMR technology, the stock’s valuation remains precarious, trading at a dynamic PE of -197.41. Investors should monitor the $44.50 level as a critical inflection point: a breakout could reignite the rally toward $50, while a failure to hold $42.50 may trigger profit-taking. The sector leader, GE Vernova (GEV), down 1.43%, underscores the sector’s mixed sentiment. For now, NuScale’s momentum is a high-stakes bet on policy-driven growth—execute with caution and watch for $44.50.