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 2024 $41-$44 in-the-money vertical Bull Call spread at $2.95 or best
Closing Trade
11-19-2024
expiration date: December 20, 2024
Number of Contracts = 40 contracts
This trade was blessed with good luck from day one. Not only did we get a surprise deregulatory push from the election result. We also got a Russian export ban for plutonium, drying up the global supply of nuclear fuel. These development caused (CCJ) shares to rise a rapid 10%.
As a result, we now have 90% of the maximum potential profit of this position in only eight trading days. The risk/reward of continuing for 22 more days until the December 20 option expiration is no longer favorable. Better to roll the money into another new nuclear trade with more upside.
I am therefore selling the Cameco (CCJ) December 2024 $41-$44 in-the-money vertical Bull Call spread at $2.95 or best.
As a result, you get to take home $1,800, or 18% in 8 trading days. Well done, and on to the next trade.
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.
If you live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like $2.95, $2.90, and $2.85. You should get done on some or all of these.
There is another new industry that is just getting started that will benefit hugely from deregulation. That is the new nuclear industry, which specializes in building small nuclear reactors. It’s regulated because when things go wrong, cities blow up. This has happened three times. Finally, I can put my time at the Atomic Energy Commission in the 1970s to work.
How would you like to buy a stock that is a call option on:
*Deregulation of the US nuclear industry
*Vast expansion of AI and its consequent power demands
*A recovery of the US economy
*A recovery of the Chinese economy
*The huge expansion of the electrical grid
*The conversion to clean energy
*The next generation of new energy technology
*Recovery of the global EV market
Then that would be Cameco.
Cameco Corporation (formerly Canadian Mining and Energy Corporation) is the world's largest publicly traded uranium company, based in Saskatoon, Saskatchewan, Canada. It is 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 115 new nuclear power plants, putting new upward pressure on fuel supplies. Also, the world’s largest producer, KazAtomProm in Kazakhstan, just announced an 11% cutback in production because of processing shortages (click here).
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. Even California has moved to extend the life of its sole remaining nuclear power plant at Diablo Canyon by five year (San Onofre and Rio Seco were closed years ago).
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 now the sun to generate nuclear power.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
This is a bet that Cameco (CCJ) will not fall below $44 by the December 20, option expiration in 23 days.
Keep in mind that Cameco is one of the most volatile stocks in the market with an implied volatility in the options of 44%. That means that after a big drop, you should see a bigger rise. You don’t have to buy it today. A greater selloff would be ideal. But it should be at the core of any long-term LEAPS portfolio, and it is selling at bargain prices.
To learn more about the company, please visit their website at https://www.cameco.com/about
Here are the specific trades you need to execute this position:
Sell 40 December 2024 (CCJ) $41 calls at………….…….............…$16.00
Buy to cover short 40 December 2024 (CCJ) $44 calls at…………$13.05
Net Proceeds:………………………….………..…………..................….....$2.95
Profit: $2.95 - $2.50 = $0.45
(40 X 100 X $0.45) = $1,800 or 18% in 8 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.
