As companies look to expand their AI capacity, the demand for energy to fuel the servers is increasing, too. That’s why small nuclear reactors (SMRs) and the companies that build them are gaining popularity. And OKLO is one of the more ambitious ones. After trading at an all-time high last Wednesday, OKLO fell 23.5% off that high over the next two days. But yesterday it rallied back a bit on news about a partnership with a Swedish SMR company that could expand its business in Europe. And that global interest could keep OKLO moving higher. OKLO’s OTM calls are trading over equidistant OTM puts, indicating that the market sees risk to the upside. That might be enough for a trader to consider a bullish strategy. OKLO’s IV is typically high, and its 119% overall IV and 36% IV rank are high enough to make short premium trades attractive. If you think OLKO will continue to rally back over the next couple of weeks, the short put vertical that’s long the 100 put and short the 102 put in the October expiration with 17 DTE is a bullish strategy that collects a credit 1/3 the width of its strikes, has a 76% prob of making 50% of its max potential profit before expiry, and that generates $1.28 of positive daily theta.
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