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 - (BRK/B) – BUY
BUY the Cameco (CCJ) December 2023 $35-$38 in-the-money vertical Bull Call spread at $2.60 or best
Opening Trade
11-10-2023
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%.
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 buying the Cameco (CCJ) December 2023 $35-$38 in-the-money vertical Bull Call spread at $2.60 or best.
Don’t pay more than $2.75 or you’ll be chasing.
Cameco is one of the largest global providers of the 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 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 increase your bid by 5 cents with a second order.
This is a bet that Cameco (CCJ) will not fall below $38 by the December 15 option expiration day in 24 trading days. For more about (CCJ) please click here for their website at https://www.cameco.com
Here are the specific trades you need to execute this position:
Buy 40 December 2023 (CCJ) $35 calls at………….………$8.00
Sell short 40 December 2023 (CCJ) $38 calls at………....$5.40
Net Cost:…………………........…..…….………...………….….....$2.60
Potential Profit: $3.00 - $2.60 = $0.40
(40 X 100 X $0.40) = $1,600 or 15.38% in 24 trading days.
If you are uncertain about 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.
