OKLO saw an impressive 800% increase in 2025, but new developments suggest a downturn. Key signs, such as RSI divergence and the stock’s drop below its 15-day EMA, along with $100 million in insider selling, indicate that caution is necessary. If the stock breaks below the 50-day SMA, it could end the rally completely. Investors need to pay close attention to important support levels. Remember, investing carries risks, including the potential for total loss and emotional stress. FXStreet states that market information is just for guidance and shouldn’t be considered as buying or selling advice. We advise conducting thorough research before investing since FXStreet cannot guarantee the accuracy or timeliness of the information provided. The views shared in this article belong to the authors. Neither FXStreet nor its advertisers take responsibility for any investment results. The author has no stock holdings related to this article and receives no compensation for mentioning any companies. All information must be independently checked, and the author and FXStreet are not liable for any mistakes or losses. This article does not give personal investment advice, as neither the author nor FXStreet is a registered investment advisor. The huge 800% rise in OKLO stock seen earlier in 2025 has stalled, with warning signals emerging in technical indicators. The stock has fallen below its 15-day EMA and shows a significant RSI divergence. This is not a moment to buy into the dip. For those trading derivatives, the current situation suggests preparing for a decline rather than a rebound. We’re focusing on the 50-day simple moving average, which is at about $10.50, as a vital support level. If the stock falls below this, it will confirm the end of the upward trend, making put options with strike prices around $10 or lower appealing for November and December. The over $100 million in insider selling seen in filings throughout September 2025 strongly supports this bearish technical outlook. The implied volatility in OKLO options is very high, with the 30-day IV recently over 115%, making direct put purchases costly. Instead, we recommend using debit spreads, like a bear put spread, to limit entry costs and define risk. This approach lets traders profit from a drop while protecting against a potential volatility decrease if the stock’s price stabilizes. Other challenges in the sector are also emerging, reinforcing a cautious view on small modular reactor stocks like OKLO. Just last week, the Nuclear Regulatory Commission (NRC) delayed its safety evaluation timeline for several SMR designs, pushing potential approvals further into 2026. Coupled with a nearly 18% drop in Henry Hub natural gas prices since their August highs, the economic case for new nuclear projects appears weaker in the short term.

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