Solaris Energy Soared 18.87%—What’s Fueling This High-Voltage Rally?

Summary
• Solaris Energy (SEI) surged 18.87% intraday, trading at $34.96 from $29.41 yesterday
• Q2 revenue jumped 102% to $149.33M, with Adjusted EBITDA climbing 29% sequentially
• $550M joint venture loan and 28th consecutive dividend signal strategic momentum

The stock’s meteoric rise on July 24, 2025, reflects a perfect storm of earnings outperformance, capital structure upgrades, and sector tailwinds. With revenue doubling year-over-year and EBITDA growth outpacing expectations, investors are re-rating Solaris’ Power Solutions segment as a cash-flow engine. The intraday high of $36.40 and low of $32.78 highlight the volatile but bullish sentiment.

Earnings Surge and Capital Moves Ignite Investor Optimism
Solaris Energy’s 18.87% rally stems from a blockbuster Q2 report: revenue surged 102% to $149.33M, with Power Solutions contributing $75.6M (up 53% QoQ). Adjusted EBITDA hit $60.6M, a 29% sequential jump, driven by 600MW of active power capacity and a $550M joint venture loan. The $0.34/share adjusted pro forma earnings beat estimates by 89%, while the $155M convertible note issuance and 28th consecutive dividend signaled financial discipline. These moves validate Solaris’ pivot from oilfield logistics to data center power solutions, with 500MW+ projects locking in long-term cash flow.

Power Generation Sector Rally as Solaris Outpaces Peers
The Power Generation and Distribution sector, led by Caterpillar (CAT) at 0.16% intraday gain, saw Solaris outperform on earnings-driven optimism. While CAT’s 52W high of $245.50 reflects cyclical demand, Solaris’ data center-focused Power Solutions segment offers higher-margin, scalable growth. The SPXL 3X leveraged ETF rose 0.57% as investors bet on sector rotation, contrasting with Solaris’ 52W high of $39.025, suggesting near-term consolidation after the 18.87% spike.

Bullish Plays: ETFs and Options to Capitalize on Solaris’ Momentum
• 200-day average: $24.28 (below) • RSI: 39.4 (oversold) • MACD Histogram: -0.43 (bearish) • Bollinger Bands: $26.93–$33.11 (current price at 96% upper band) • Volume: 2.49M (9.31% turnover)

Solaris is testing its 52W high of $39.025, but technicals suggest short-term consolidation. Key levels to watch: $33.11 (Bollinger upper band) and $24.28 (200-day SMA). The Direxion Daily S&P 500 Bull 3X Shares (SPXL) at $187.21, up 0.57%, could mirror sector strength if the 52W high holds. For options, two contracts stand out:

1. SEI20250815C35 (Call, $35 strike, Aug 15 expiration):
• IV: 58.83% (moderate)
• Leverage Ratio: 19.13% (high)
• Delta: 0.49 (balanced sensitivity)
• Theta: -0.062 (aggressive time decay)
• Gamma: 0.078 (responsive to price swings)
• Turnover: $39,893 (liquid)
• Payoff (5% upside): $2.48/share (35.96 → 37.41)
• Ideal for aggressive bulls seeking leverage in a high-gamma, liquid contract. The 19.13% leverage ratio amplifies gains if the $35 strike is breached.

2. SEI20250919C35 (Call, $35 strike, Sep 19 expiration):
• IV: 67.47% (high)
• Leverage Ratio: 9.84% (moderate)
• Delta: 0.535 (moderate sensitivity)
• Theta: -0.038 (moderate time decay)
• Gamma: 0.0428 (moderate responsiveness)
• Turnover: $6,430 (solid)
• Payoff (5% upside): $2.48/share (35.96 → 37.41)
• A safer play for mid-term bulls. The 67.47% IV reflects elevated volatility expectations, while the 0.535 delta ensures participation in a sustained rally.

Hook: Aggressive bulls may consider SEI20250815C35 into a breakout above $35, while longer-term buyers should target SEI20250919C35 if support holds at $32.78.

Backtest Solaris Energy Stock Performance
The backtest of SEI's performance after a 19% intraday surge shows favorable results, with the 3-Day win rate at 62.93%, the 10-Day win rate at 67.24%, and the 30-Day win rate at 67.24%. The maximum return during the backtest period was 28.10% over 30 days, indicating that SEI can continue to perform well in the short term following a significant intraday increase.

Bullish Setup Confirmed—Act Fast on Solaris’ 52W High Re-Test
Solaris Energy’s 18.87% surge is driven by earnings outperformance and capital structure upgrades, but technicals suggest short-term consolidation near $34.96. The 52W high of $39.025 remains a critical level; a break above $36.40 could trigger a retest of this barrier. Investors should monitor the $33.11 Bollinger upper band and $24.28 200-day SMA for directional clues. For immediate action, the SEI20250815C35 call offers high leverage and liquidity, while the sector leader Caterpillar (CAT) at 0.16% gain underscores broader energy infrastructure momentum. Watch for $35.00 clearance or a breakdown below $32.78 to define next steps.