SMR is up 1000% from the lows this year

Andrew Giovinazzi

BY ANDREW GIOVINAZZI

October 17, 2024

Yo Pit Crazies,

Frank and I are on the nuclear hunt this past year and have ridden some names higher but not many have performed as well as Nuscale Power Corp (Ticker: SMR). After Microsoft Corp (Ticker: MSFT) shanghaied 3 Mile Island to produce power, Amazon.com Inc (Ticker: AMZN) is looking to hook into some small scale reactors as soon as possible.

1 year SMR chart

I even covered SMR in the Pitstop yesterday noting there was a decent squeeze but not in the heavy shorting area yet. It was still enough that the borrow rate was quite high and a squeeze could get ugly. It is for sure creating some interesting closing action.

I did have a trade in Cap Gains for SMR.

Let’s see how I did and what is in store for SMR.

I was long the SMR Jan2025 12.5/20 call spreads

But… I closed them yesterday for a 50% gain. Today it would be 100%. I am not complaining about wins but sending out alerts to close always makes things a little tricky riding a larger gain. What I might start doing is using a stock stop price so that way I can give myself a bit more to ride a win and folks looking at alerts have a good idea if things go south.

On a hard to borrow stock, things can change fast. The liquidity providers pumped up the puts big time in SMR here so the squeeze is getting tougher from yesterday roughly doubling today. There is likely more up action in SMR.

Oct 15 squeeze

Oct 16 squeeze

That is two of the Great 8 looking for nuclear power to run AI farms. Cameco Corp (Ticker: CCJ) is another nuclear stock that is getting some love recently. It is a small space with few players and DJT presidency might move things faster on the regulatory front.

For shorter term plays, check this out.

To Your Trading Success,