Oklo (OKLO) Might Be a UFO!

I’ve been learning kah rah tay and I wanted to practice my new fission chop on this abnormally large atom! What could go wrong?
Today I saw an opportunity for another nuclear energy company, having already closed out the CCJ trade I wrote about last week, so I decided to trade it! Originally I wanted to trade ASML because it was down ~10%, but I couldn’t fill the put debit spread that I wanted. Oh well! But before we get to OKLO…
What’s the Word on the Street?
It’s been a strange day for the markets. As of me writing this, the market is currently up, but it was down earlier when news spread that the President was getting ready to fire Jerome Powell, the Chairman of the Federal Reserve. The markets don’t like that idea (because it would be completely unprecedented and cause unnecessary uncertainty), but the President downplayed the news and clarified that he wasn’t going to do that.
The original news of the possible firing makes sense. The President has been very vocal about his displeasure that the Federal Reserve hasn’t been cutting interest rates. With the CPI release this week showing that inflation is still elevated beyond the 2% goal, the President might think that the Fed is going to continue to keep rates where the are for the time being until more data proves otherwise.
Either way, there are still UFOs to trade and today is…
Oklo (OKLO)

What Is It?
Oklo, Inc. engages in the development of fission reactors. It provides clean energy through the design and deployment of fast fission power plants. The company was founded by Jacob DeWitte and Caroline Cochran on July 3, 2013 and is headquartered in Santa Clara, CA. The listed name for OKLO is Oklo Inc.
Why Is It a Possible UFO?
Primarily its current share price relative to its fair value, what other option traders expect, and its volatility are the reasons OKLO could be a UFO.
What About Recent News?
Nuclear power is all the rage as demand for energy increases. Cryptocurrency mining and artificial intelligence require massive amounts of power. Subsidies for wind and solar have been on the chopping block and major tech companies have been turning to nuclear power as a clean-ish way to fuel their needs.
Also, the U.S. Department of Energy just announced a program intended to build advanced domestic nuclear fuel lines. OKLO stands to benefit from such an initiative.
What’s the Current Price?

Of course as I’m writing this, OKLO is rising over 5% today. I was fortunate to trade this earlier in the day when it was down, but it’s still a good stock! YTD it’s up over 200% due to recent trends that I mentioned in the previous section, up ~19% in the past week, but down ~4% in the past month.
What’s the Fair Value?

I’d first like to emphasize that fair value is subjective. Many analysts at many banks and institutions rate stocks differently and assign fair value in their own unique way. So, what I like to do is take all the recent fair values since the most recent earnings report and average them. In this case…
Since OKLO’s most recent earnings report on 05/13/2025, it has received 5 ratings and taking the average the fair value might be somewhere around: $69 (Actually $69.60, but I’m rounding down). All ratings are a buy. The lowest being $55, the highest being $75.
What Do Options Traders Think?

Calls are trading over equidistant puts, which means traders think there is a chance to the upside. You can see because… forget about the green columns and focus on the red. Notice how on the right side for the $61 put it says $6.20, it’s $7.90 for the equidistant call at $66.
The premium (the credit you receive for executing the trade) is currently less for selling puts, as opposed to selling calls. Basically because of that, option traders expect the stock to go up, rather than down.
How About Volatility?

The IV rank (the purple line) for OKLO (stock price in blue) is currently hovering around 37.77, which is somewhat elevated. This makes short strategies (which are what I prefer) more attractive.
What’s the Trade?

My preferred trade is a variation of the wheel without the rolling, AKA cash-secured puts. I typically like to target stocks that offer a dividend and are below fair value.
Why a dividend? If the trade results in assignment and I’m on the hook for X amount of shares, I can at least be satisfied knowing I picked a (hopefully under fair value) company that will pay me a small amount while I run the other side of the trade AKA covered calls.
It’s a fairly low-risk strategy (all options trading is risky!), that has a higher probability of success, but requires a higher amount of collateral.
OKLO unfortunately doesn’t offer a dividend. But the stock price is cheap, which means the collateral requirement is fairly low.
So if you saw the most recent image above, I already STO (sold to open) 1 contract of the $46 put for the August 29th expiration. I like to have a DTE (Days to Expiration) that is around ~45 days.
When the trade reaches 50% profit I will buy it back. I don’t like to be greedy and go for more profit, because I would rather not waste my time being in a trade for too long.
What About Alternative Trade Ideas?
- If the collateral requirement is too high, another idea is a put credit spread. You would sell a put at a strike below the current share price and then buy a put at a lower strike than the put you sold. By doing so, you will avoid the collateral requirement of a cash-secured put, but the credit received will be smaller. Also, if the trade goes sideways, you will not be assigned shares so no collecting dividends and running covered calls afterwards.
- Just invest! 1 share or even fractional shares are a way to get a foothold in a stock that you think might increase in value.
Wait…Where Are the Candlesticks? And All the Other Indicators?
I know many traders love their candlesticks and a ton of indicators. I prefer simplicity. Candlesticks aren’t necessary unless you’re the kind of trader that wants to try and pick the perfect moment to execute a trade, and even then it’s not a sure thing.
As for indicators, there are a ton. Some of them work sometimes. None are perfect. I don’t want to get bogged down with too many. You’ll drive yourself crazy looking at too many of them, so find a handful you like and stick with those.
Disclosure
- I currently have open trades with OKLO (as mentioned in this post).
- No trade is a sure thing. There is always risk involved.
- This blog post is not meant to take the place of financial advice, but hopefully acts as a guide for learning or informational purposes.