Oklo stock rose nearly 4% in premarket trading, extending the 12% gain from the previous session. The rebound came as investors returned to small modular reactor (SMR) stocks, including NuScale. However, Oklo still faces significant risks, which helps explain its elevated short interest and continued insider selling.

Top insiders have been selling Oklo stock

While Oklo stock has rebounded this week, it remains well below its all-time high of $194.26. The sharp sell-off has been highly profitable for short sellers, with the FT estimating that investors betting against companies in the industry have made more than $2 billion.

Top insiders have been selling their shares, which is usually a red flag. Barchart data shows that insiders have made…