Hey Trader,
Follow the money … isn’t that what they say?
Well, I like doing just that … and right now, Big Money is paying special attention to one stock in particular …
(It’s actually a name I just closed out a win on myself.)
What name does Big Money think is about to go nuclear?
This is a name that has been popping up all over my radar for months …
Cameco Corp., the world’s largest publicly traded uranium company, and a personal favorite of mine.
In fact, I recently closed out a +70% win on this name … click here to watch me explain how I did it.
Of course, I’m not the only one keeping a close eye on the stock … especially following news that Russia is threatening to ban uranium imports to the U.S.
The stock has now eclipsed its late-2021 “uranium mania” highs …
Chart courtesy StockCharts
And after a bit of a late 2021/early 2022 pullback, it looks like CCJ is ready to go nuclear … again.
Of course, as much as I like CCJ, Big Money LOVES CCJ … and this isn’t the first time we’ve seen some heavy paper flows in the name.
But what are we looking at now?
Calls. Lots and lots of calls … especially targeting one contract in particular.
On Friday, the April 35-strike call saw a trade volume of nearly 21,000, including this block of 15,000 calls purchased for $0.39.
That block alone cost about $585,000, before fees and commissions.
And with CCJ trading at $27.36 when this trade was made, the breakeven cost of $35.29 represented almost a 30% premium on CCJ’s current price! Not to mention, CCJ hasn’t eclipsed the $35 mark since early 2011 …
Of course, Big Money wasn’t done yet …
On Monday, we saw an even larger block of calls cross the tape, at a significantly higher price I’d like to point out:
This block of 21,707 April 35-strike calls purchased for $0.67 represents an outlay of $1,454,369 …
So all together, these two blocks of April 35-strike calls cost more than $2 million to buy!
Of course, CCJ was having quite a strong showing during Monday’s trading session, and was trading around $29.40 when this trade was made (though the shares closed slightly lower at $29.27, up 6.9% on the day) …
So this time around, the trader “only” needs more than a 21% upside out of the shares …
This out-of-the-money contract now represents CCJ’s largest open interest position, with more than 52,000 contracts outstanding …
And lest you think CCJ’s pits are popping because options are cheap, think again …
Yes, implied volatility (the red line) has come down slightly from its early March highs …
But options buyers are still paying a premium for the expected movement out of CCJ …
Although, as you can tell from the 20-day historic volatility (the blue line) the shares have been delivering as of late.
Now, when I made my own CCJ trade earlier this month, implied volatility was around the same levels as it is now … which is to say, options were expensive.
So did I pony up the cash to bet big on CCJ?
No. I found a workaround … see how I constructed my trade right here.
I ended up with a solid +70% gain on my own CCJ trade …
And I’ll be going live tonight at 8 p.m. to give you the details on how I’m racking in similar wins.
RSVP here to receive the direct access link!
Your Only Option,
Mark Sebastian