2 Reasons to Buy This Surging Nuclear Energy Stock

Small module reactor stock Oklo Inc (NYSE:OKLO) is 5.9% higher to trade at $76.68 this afternoon, eyeing its ninth win in 10 sessions. Behind today's pop is news the company will partner with Nvidia (NVDA) and Los Alamos National Laboratory to support nuclear-powered AI factories in Los Alamos, California. 

Today's jump has Oklo stock building some separation from its year-to-date level and padding its 55.8% April gain. This rally has OKLO flashing a bullish quantitative signal that could catapult the shares back near their October record highs.

The trendline in question is the stock's 80-day moving average. Per Schaeffer's Senior Quantitative Analyst Rocky White, this “crossover” event happened twice in the last 10 years, after which OKLO was higher one month later both times, averaging an incredible  133.3% gain. From its current perch, a move higher of this magnitude would put the shares just shy of $180 -- within a chip-shot of its Oct. 15 record of $193.84.

The stock is also ripe for a squeeze. Shorts have been piling on, short interest up 26.2% in the past two reporting periods, which now accounts for 16.9% of the stock's available float. At OKLO's average pace of trading, it would take shorts nearly three days to buy back these bets.

The stock's Schaeffer's Volatility Scorecard (SVS) comes in at 87 out of 100. In other words, the shares have consistently realized higher volatility than its options have priced in over the past 12 months.