TeraWulf Skyrocketed 12.1%—What’s Fueling This Volcanic Eruption?

Summary
• TeraWulf (WULF) surged 12.09% intraday, hitting a 52-week high of $10.71
• Google boosted its stake to 14%, with $3.2B in backstop funding and 32.5M warrants
• Fluidstack expanded its Lake Mariner contract to 360MW, unlocking $6.7B in revenue
• Options frenzy: 20 contracts traded, with WULF20250822C10 seeing 173.91% price change
Today’s explosive move in TeraWulf reflects a perfect storm of strategic partnerships and capital inflows. With Google’s deepening commitment and Fluidstack’s expansion, the stock’s 12.1% surge—its largest intraday gain in over a year—has ignited a frenzy in the options market. Traders are scrambling to position for a potential breakout, as technical indicators and news flow align to signal a high-velocity rally.

Google’s $3.2B Bet and Fluidstack’s 360MW Expansion Ignite Bullish Frenzy
TeraWulf’s 12.1% surge is directly tied to two blockbuster announcements. First, Google increased its backstop funding to $3.2B and its equity stake to 14%, granting warrants for 32.5M shares. This signals a strategic deepening of their partnership to build AI infrastructure at Lake Mariner. Second, Fluidstack exercised a 160MW expansion option, boosting total contracted capacity to 360MW and securing $6.7B in revenue. These moves validate TeraWulf’s role as a critical player in the AI/datacenter boom, with Google’s financial muscle and Fluidstack’s demand creating a self-reinforcing cycle of growth and credibility.

Data Processing Sector Mixed as EQIX Dips 0.66%
Options Volatility and ETFs Signal High-Risk, High-Reward Playbook
• RSI: 83.19 (overbought)
• MACD: 0.648 (bullish), Signal Line: 0.291
• 200D MA: $4.86 (far below current price)
• Bollinger Bands: Price at 7.81 (upper band), 5.50 (middle), 3.19 (lower)
• Kline Pattern: Short-term bullish trend, long-term ranging
With RSI in overbought territory and MACD surging, TeraWulf’s technicals scream short-term momentum. However, the stock’s 52-week range of $2.06–$10.71 suggests volatility could persist. Traders should focus on near-term options with high leverage and liquidity to capitalize on the bullish surge.

Top Option 1: WULF20250822C10
• Strike: $10, Expiry: 8/22
• IV: 120.08% (high volatility)
• Leverage Ratio: 15.84% (moderate)
• Delta: 0.569 (moderate sensitivity)
• Theta: -0.100 (rapid time decay)
• Gamma: 0.276 (high sensitivity to price moves)
• Turnover: $1.66M (liquid)
This call option offers a balance of leverage and liquidity, ideal for riding the short-term momentum. A 5% price move to $10.55 would yield a payoff of $0.55 per contract, translating to a 34.6% gain on the option’s current price.

Top Option 2: WULF20250829C10
• Strike: $10, Expiry: 8/29
• IV: 106.00% (high)
• Leverage Ratio: 11.93% (moderate)
• Delta: 0.570 (moderate)
• Theta: -0.0497 (moderate decay)
• Gamma: 0.202 (high sensitivity)
• Turnover: $1.53M (liquid)
This option extends the trade window by a week, offering more time for the bullish narrative to play out. A 5% move would yield a $0.55 payoff, a 23.8% gain on the option’s price.

Action Alert: Aggressive bulls should prioritize WULF20250822C10 for a high-leverage, short-term play. If the stock holds above $10.00, consider rolling into WULF20250829C10 to extend exposure.

Backtest TeraWulf Stock Performance
The 12% intraday surge in WULF has historically led to positive short-to-medium-term gains. The backtest data shows that:1. Frequency and Win Rates: The event has occurred 404 times over the past five years, with a 3-day win rate of 51.49%, a 10-day win rate of 51.98%, and a 30-day win rate of 56.93%. This indicates a higher probability of a positive return in the short to medium term after the surge.2. Returns: The average 3-day return following the surge is 1.19%, with a maximum return of 24.63% on day 59. The 10-day return is 3.76%, with a maximum return of 31.78% on day 94. The 30-day return is 10.18%, with a maximum return of 48.20% on day 137.3. Max Return Days: The maximum return days following the surge are spread out, with the earliest at day 59 and the latest at day 137. This suggests that while there is potential for immediate gains, the optimal return period may extend beyond the initial three days.In conclusion, while there is some volatility in the immediate aftermath of the surge, the data indicates that WULF is more likely to experience positive returns in the short to medium term, with the potential for substantial gains if held for 10 to 30 days.

TeraWulf’s Volcanic Eruption: Ride the Wave or Watch the Smoke Clear?
TeraWulf’s 12.1% surge is a high-stakes gamble on its AI/datacenter expansion, backed by Google and Fluidstack. While technicals and news flow are bullish, the stock’s 52-week range and overbought RSI suggest caution. The sector leader, Equinix (EQIX), dipped 0.66%, highlighting mixed sentiment in the space. Traders should monitor the $10.00 support level and watch for a potential pullback to the 200D MA at $4.86. For now, the options frenzy and strategic partnerships justify a bullish stance, but volatility remains a double-edged sword. Act now: Buy WULF20250822C10 for a high-leverage play, but set tight stops below $9.82 (intraday low).