Shares of Constellation Energy Corp (NASDAQ:CEG) are higher this morning, up 5.5% at $357.93 after the company landed a $1 billion federal loan from the Department of Energy (DoE), facilitating the restart of its discarded nuclear plan, Three Mile Island Unit 1. The plan was first brought to light in late 2024 after Constellation Energy penned a 20-year deal with Microsoft (MSFT).
Earlier this month the company reported worse-than-expected Q3 results and lowered its full-year outlook. The overhead $360 ceiling looks to be capping today's gains, though the shares sport a 60% gain for 2025 and could be due for more gains. Specifically, the equity's 14-day Relative Strength Index (RSI) of 18 is deep in "oversold" territory, suggesting a short-term bounce may be in the cards.
Puts have been more popular of late, per CEG's 10-day put/call volume ratio of 1.53 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 98% of readings from the past year, leaving plenty of room for tailwinds, should this bearish sentiment begin to unwind.
Adding to the sentiment, CEG's Schaeffer's Volatility Index (SVI) of 53% stands higher than just 16% of all other readings from the past year, implying that near-term option traders are pricing in relatively low volatility expectations.
