Buy Call CCJ

August 1, 2024
Two Trades: Sell Balance of your CCJ December 55 Calls and a Third of HPE January 22 Calls.

The market continues to swing violently day to day … and I mean VIOLENTLY. Today is one of those bad days (SPY down 1.1%, QQQ down 1.7%, IWM lower by 3.5%).

Regardless, with more and more stocks breaking down, or at least not participating in the up days, let’s de-risk the portfolio even more.

To execute these trades you need to:

Sell to Close your CCJ December 55 Calls

And

Sell to Close a third of your HPE January 22 Calls

CCJ was mostly unchanged on earnings yesterday but is breaking down hard today. It’s time to move on.

And in terms of HPE, it’s far from a disaster, but for now at least, the stock is mostly chopping around/trending lower. Let’s sell a piece and then step back and evaluate the position in the days/weeks to come.

Stepping back to the market, who knows where we are going as every day it’s a new story. And because of that volatility, I continue to preach patience.

There will be a time to buy again, but for now at least, it feels like building a watchlist is the best course of action.

July 30, 2024

Sell a Third of Existing Position/Earnings Preview: Sell a Third of your CCJ December 55 Calls for $1.50 or more.

CCJ will report earnings tomorrow before the market open. And while the price of uranium is likely a larger mover of CCJ’s stock price than earnings, the stock has been bleeding for the last two weeks, and I am going to sell another third of our position today.

To execute this trade you need to:

Sell a third of your CCJ December 55 Calls

After this sale we will hold the last third of our trade through earnings tomorrow morning, and should the stock again decline, we may fully move on from this trade.

Finally, here is the earnings preview of CCJ:

CCJ – With the stock trading at 44, the options market is pricing in a move of $2.50 this week, or 41.5 to the downside and 46.5 to the upside.

Open interest is skewed bullish on a ratio of 1.7:1 call vs. put.

Skew is pricing in typical downside fear and upside interest.

May 30, 2024

Sell a Third of Existing Position: Sell a Third of your CCJ December 55 Calls for $7.90 or more.

CCJ is breaking out to a new high today, and option activity is red hot. And while I think the odds favor the stock going higher, as we have seen several times since buying this position, Uranium plays can go from hot to cold very quickly. For that reason, let’s stick to the system and lock in a profit of approximately 20% today.

To execute this trade you need to:

Sell to Close a Third of your CCJ December 55 Calls

May 7, 2024
Buy the Cameco (CCJ) December 55 Calls (exp. 12/20) for $7.50 or less.

Over and over again in recent days options traders have been building bullish options positions in Cameco (CCJ) and its uranium peers. Here are some of those trades:

Today – Buyer of 9,000 Cameco (CCJ) May 56 Calls for $0.43 – Stock at 52

Today – Buyer of 10,000 Cameco (CCJ) June 55 Calls for $2 – Stock at 52

Last week:

Monday – Buyer of 15,000 Cameco (CCJ) December 55 Calls for $6 – Stock at 49.75

Wednesday – Buyer of 12,500 Cameco (CCJ) December 60 Calls for $3.30 – Stock at 47.5 (rolled from December 50 calls)

Thursday – Buyer of 5,000 Cameco (CCJ) December 55 Calls for $4.43 – Stock at 47

Thursday – Buyer of 20,000 Uranium ETF (URA) June 30 Calls for $2.10 – Stock at 30.5

This option activity, along with the strength in CCJ stock which is trading at a new recent high, as well as two upgrades in the last two days, is a nice set-up for the stock to move higher. Let’s get involved with a longer-term call buy …

To execute this trade you need to:

Buy to Open the CCJ December 55 Calls

The most you can lose on this trade is the premium paid, or $750 per call purchased.

The risks I see in this trade are pretty straightforward as commodity stocks can get red-hot, but also turn ice cold VERY quickly. And with that in mind, it’s possible we are top-ticking CCJ.

That being said, I really like the constant call buying, the recent stock strength, as well as the upgrades (noted below), and am going to add CCJ to the portfolio today.

Today – Bank of America adds CCJ to its US1 List

Yesterday – Goldman Sachs raises price target to 56