Trade Alert - (CCJ) December 5, 2023 - 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) December 2023 $35-$38 in-the-money vertical Bull Call spread at $2.98 or best
Closing Trade
12-5-2023
expiration date: December 15, 2023
Portfolio weighting: 10%
Number of Contracts = 40 contracts
If you don’t do options, buy the stock. My target for (CCJ) in 2024 is $80, up 100%.
There is nothing like a 22% move in a stock since we added this position to ring the cash register. My bet that the nuclear power renaissance would accelerate proved correct with the COP summit in Dubai.
But with 95.00% of the maximum profit in hand, I am going to take the money and run. The markets have had a heck of a run.
The risk/reward of continuing is no longer favorable with eight trading days left until the December 15 option expiration. Better to raise cash to pour it into another new position. This position is now an astonishing 40.17% in-the-money.
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.
I am therefore selling the Cameco (CCJ) December 2023 $35-$38 in-the-money vertical Bull Call spread at $2.98 or best.
As a result, you get to take home $1,520 or 14.62% in 17 trading days. Well done and on to the next trade.
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 now 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 2 cents with a second order.
This was a bet that Cameco (CCJ) would not fall below $38 by the December 15 option expiration day in 8 trading days. For more about (CCJ), please click here for their website.
Here are the specific trades you need to close out this position:
Sell 40 December 2023 (CCJ) $35 calls at………….………..............$11.00
Buy to cover short 40 December 2023 (CCJ) $38 calls at….……....$8.02
Net proceeds:……………………..…….………..………................….….....$2.98
Profit: $2.98 - $2.60 = $0.38
(40 X 100 X $0.38) = $1,520 or 14.62% in 8 trading days.
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.