NuScale Power (SMR) Surges 5% on Intraday Rally: What’s Fueling the Momentum?

Summary
• NuScale Power (SMR) rockets 5.03% to $36.93, piercing its 52-week high of $53.50
• Intraday range spans $35.61 to $37.08, with turnover surging to 4.09 million shares
• RSI at 21.77 signals extreme oversold conditions, while MACD histogram narrows
• Options frenzy: 20 contracts trade with implied volatility above 65%, including SMR20250905C37.5 (IV: 71.03%)

NuScale Power’s (SMR) 5.03% intraday surge has ignited a technical rebound, with the stock trading near its 52-week high. The move defies its -166.22 P/E ratio and follows a sharp selloff into oversold territory. With options volatility spiking and key technical indicators aligning, traders are scrambling to decipher whether this is a short-term bounce or a potential reversal.

Technical Oversold Conditions Ignite Short-Term Bullish Momentum
NuScale Power’s (SMR) 5.03% rally stems from a confluence of technical triggers. The RSI at 21.77—a level typically associated with oversold conditions—has drawn algorithmic buying. Meanwhile, the MACD (-2.16) remains below its signal line (-1.80), but the narrowing histogram (-0.36) suggests waning bearish momentum. Bollinger Bands show the price is trading 16% above the 20-day moving average (38.76), indicating a breakout attempt. The 30-day support/resistance zone (34.93–35.31) has been decisively breached, fueling short-term bullish sentiment.

Options Volatility and ETF Gaps: Aggressive Plays for the SMR Rally
• 200-day MA: $26.62 (far below) | 30-day MA: $42.11 (above) | RSI: 21.77 (oversold)
• Bollinger Bands: Upper $48.82 | Middle $38.76 | Lower $28.71
• MACD: -2.16 (bearish) | Histogram: -0.36 (narrowing)
• Turnover rate: 3.83% (healthy)

With SMR trading near its 52-week high, the key levels to watch are the 200-day MA ($26.62) for support and the upper Bollinger Band ($48.82) for resistance. The RSI’s oversold reading and narrowing MACD histogram suggest a potential reversal, but the -166.22 P/E ratio warns of structural risks. No leveraged ETFs are available, so options remain the primary vehicle for exposure.

Top Option 1: SMR20250905C37.5
• Code: SMR20250905C37.5 | Type: Call | Strike: $37.50 | Expiry: 2025-09-05
• IV: 71.03% (high volatility) | Leverage: 27.65% | Delta: 0.456 | Theta: -0.163 | Gamma: 0.0967 | Turnover: 37,964
• IV: Elevated volatility boosts premium | Leverage: Amplifies gains | Delta: Moderate sensitivity | Theta: Aggressive time decay | Gamma: High sensitivity to price moves
• This call option stands out for its high gamma (0.0967) and leverage ratio (27.65%), making it ideal for a 5% upside scenario. A 5% move to $38.77 would yield a payoff of $1.27 per contract, translating to a 46.5% return on the premium paid.

Top Option 2: SMR20250905C38
• Code: SMR20250905C38 | Type: Call | Strike: $38.00 | Expiry: 2025-09-05
• IV: 68.09% (moderate volatility) | Leverage: 34.37% | Delta: 0.404 | Theta: -0.1495 | Gamma: 0.0985 | Turnover: 37,895
• IV: Balanced volatility | Leverage: Strong amplification | Delta: Moderate sensitivity | Theta: High time decay | Gamma: Exceptional sensitivity
• This contract offers the highest gamma (0.0985) and leverage (34.37%) among the chain. A 5% price move to $38.77 would generate a $0.77 payoff, representing a 22.4% return on the premium. Its high liquidity (37,895 turnover) ensures ease of entry/exit.

Aggressive bulls should consider SMR20250905C38 into a break above $38.00, while cautious traders may target SMR20250905C37.5 for a controlled rally.

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Act Now: SMR’s 5% Rally Hints at a Critical Technical Inflection
NuScale Power’s (SMR) 5.03% surge reflects a technical rebound from oversold conditions, but the -166.22 P/E ratio underscores long-term risks. Traders should monitor the 200-day MA ($26.62) for support and the upper Bollinger Band ($48.82) for resistance. The SMR20250905C38 call option offers the highest gamma and leverage for a 5% upside scenario. Meanwhile, the sector leader GE (0.45% up) provides a benchmark for broader market sentiment. Immediate action: Buy SMR20250905C38 if $38.00 is breached, or short-term puts if the rally falters below $35.61.