Oklo Inc (NYSE:OKLO) stock is buzzing today, up 2.6% to trade at $61.26 at last check, after the U.S. Energy Department approved the construction of the nuclear company's first reactor. More specifically, the U.S. Nuclear Regulatory Commission licensed Oklo to handle Ra-226 at its Idaho isotope facility. The news comes hours ahead of the company's fourth-quarter earnings report, due out ahead of the close.
The stock has a positive post-earnings history, finishing higher after four of the last six reports, including a 6.7% bull gap on Nov. 12. The options market is pricing in a 12.5% post-earnings move for tomorrow's trading -- regardless of direction -- bigger than the average post-earnings move of 10.8% in the last two years.
OKLO has traded in a tight range since February, but is now down only 13% year to date. The stock is still trading below its 50-day moving average, but earlier topped the 20-day trendline. Longer term, the shares are a ways off their Oct. 15 record high of $193.84, carving a channel of lower lows.
A short squeeze could power a new rally. Short interest rose 12% in the last month, and the 19.12 million shares sold short now account for 15.2% of OKLO's total available float.
Oklo stock also tends to outperform options traders' volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) of 87 out of 100.
