Trade Alert - (CCJ) February 14, 2024 - TAKE PROFITS - SELL

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Trade Alert - (CCJ) – TAKE PROFITS

SELL the Cameco (CCJ) February 2024 $38-$41 in-the-money vertical Bull Call spread at $2.75 or best

Closing Trade

2-14-2024

expiration date: February 16, 2024

Portfolio weighting: 10%

Number of Contracts = 40 contracts

Unfortunately, higher interest rates weakening other commodity prices have also dragged down Cameco shares, which have lost 20% over the last week. That has eaten up half of our profit.

Even though we have only two days left until the February 16 option expiration, we are too close to our nearest $41 strike to continue. We are only one weak opening away from a loss.

I am therefore selling the Cameco (CCJ) February 2024 $38-$41 in-the-money vertical Bull Call spread at $2.75 or best.

As a result, you get to take home $1,000 or 10.00% in 23 trading days. Well done and on to the next trade.

Uranium Goes Nuclear, with yellow cake prices up 45% since May. Before the Ukraine war, Russia produced 50% of the world’s nuclear fuel. Now it is banned due to sanctions. The US has announced the creation of a nuclear fuel stockpile. Congress is about to vote on a ban on Russian fuel. France just announced the addition of 14 large nuclear plants. Oh, and it’s green. I used to collect uranium glass.

Cameco Corporation (formerly Canadian Mining and Energy Corporation) is the world's largest publicly traded uranium company, based in Saskatoon, Saskatchewan, Canada. In 2022, it was the world's second-largest uranium producer, accounting for 11.61% of world production.

My hedge fund buddies are piling into this stock because the nuclear renaissance is just getting started. The electrification of our energy sources is creating immense demand for new electric power sources. China alone plans to build 100 new nuclear power plants putting new upward pressure on fuel supplies.

Nuclear power is also viewed as a backup for new alternative sources for the days when the sun doesn’t shine, and the wind doesn’t blow. Western countries also need to replace Russian supplies of uranium in compliance with sanctions.

Cameco is one of the largest global providers of uranium fuel. Utilities around the world rely on its products to generate safe, reliable, emissions-free nuclear power. The company is meeting the ever-increasing demand for clean, baseload electricity while delivering energy solutions to support the world's net-zero goals. It doesn’t need wind or the sun to generate nuclear power.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 5 cents with a second order.

This was a bet that Cameco (CCJ) would not fall below $41 by the February 16 option expiration day in 2 trading days. For more about (CCJ), please click here for their website.

Here are the specific trades you need to close out this position:

Buy 40 February 2024 (CCJ) $38 calls at………….………$4.00

Sell short 40 February 2024 (CCJ) $41 calls at……….....$1.25

Net Proceeds:…………...…..…….………..………….…...........$2.75

Profit: $3.00 - $2.75 = $0.25

(40 X 100 X $0.25) = $1,000 or 10.00% in 23 trading days.

 

 

 

 

 

Uranium Glass

 

 

If you are uncertain on how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.