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Oko Inc (OKLO) unquestionably ranks among the hottest names on Wall Street. Even with the midweek volatility, OKLO stock is up around 452% on a year-to-date basis. For context, the benchmark S&P 500 index is up 13.3% during the same frame. Still, the remarkable rally raises questions about sustenance, an area where the options market may provide useful insights.

On a broad level, investors are securing profits after a mercurial run in the markets. Not helping matters for the bulls is the cryptocurrency market. With the digital asset ecosystem suffering a steep correction, blockchain miners have witnessed their value implode. Fundamentally, a deflated crypto sector implies reduced energy consumption demand, which would naturally impact Oklo’s nuclear power business.

OKLO stock isn’t the only nuclear play down today, with Cameco (CCJ) and Uranium Energy Corp (UEC) also slipping. However, the erosion wasn’t nearly as pronounced. While the latter two shares by single-digit-percentage points, OKLO plunged more than 16% during the early afternoon hours. Still, for adventurous types, there could be an opportunity brewing.

From Sept. 17 onward, OKLO stock appears to be forming a head-and-shoulders pattern, which has bearish implications under the discipline of technical analysis. The problem with this assertion is that it’s a complete heuristic as there’s no epistemological basis for declaring the formation as such. However, the options market provides an intriguing detail.

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Per data from Fintel, the gap between the OKLO stock price and net long option premiums bought was relatively expansive from late September through early October. This potentially indicates that bullish traders exited their long exposure. However, the gap tightened in mid-October only to expand again later in the month.

Presumably, weak hands reentered the market last week and then quickly exited again. If indeed that was the case, the weak hands would likely be tempted to move back into OKLO stock at the current discounted price. That would form the second shoulder of the head-and-shoulders pattern before a more decisive exiting craters the security.

Personally, there’s a lot of assumptions baked into the thesis, which makes the argument admittedly brittle. Nevertheless, those looking for a short-term wager may consider OKLO stock.

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