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) – BUY
BUY the Cameco (CCJ) January 2026 $40-$42 out-of-the-money vertical Bull Call spread LEAPS at $0.75 or best
Opening Trade
9-11-2024
expiration date: January 16, 2026
Number of Contracts = 1 contract
We have just seen a healthy 37% correction in the shares of Canadian uranium miner Cameco (CCJ) and I am starting to salivate. Finally, I can put my time at the Atomic Energy Commission in the 1970s to work.
If you don’t do options, buy the stock. My target for (CCJ) in 2026 is $80, up 120%.
How would you like to buy a stock that is a call option on:
* A recovery of the US economy
*A recovery of the Chinese economy
*The expansion of the electrical grid
*The conversion to clean energy
*The next generation of new energy technology.
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 years (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.
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 $42 by the January 16, 2026 option expiration in 16 months.
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
I am therefore buying the Cameco (CCJ) January 2026 $40-$42 out-of-the-money vertical Bull Call spread LEAPS at $0.75 or best.
Don’t pay more than $1.00 or you’ll be chasing on a risk/reward basis.
Please note that these options are illiquid, and it may take some work to get in or out. Executing these trades is more an art than a science.
Let’s say the Cameco (CCJ) January 2026 $40-$42 out-of-the-money vertical Bull Call spread LEAPS are showing a bid/offer spread of $0.50-$1.50. Enter an order for one contract at $0.50, another for $0.60, another for $0.70, and so on. Eventually, you will enter a price that gets filled immediately. That is the real price. Then enter an order for your full position at that real price.
Notice that the day-to-day volatility of LEAPS prices is minuscule, less than 10% since the time value is so great. This means that the day-to-day moves in your P&L will be small. It also means you can buy your position over the course of a month just entering new orders every day. I know this can be tedious but getting screwed by overpaying for a position is even more tedious.
Look at the math below and you will see that an 11.40% rise in (CCJ) shares will generate a 167% profit with this position, such is the wonder of LEAPS. That gives you an implied leverage of 14.65:1.
(CCJ) doesn’t even have to get to a new all-time high to make the max profit. It only has to get back to $42 where it traded months ago.
Only use a limit order. DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES. Just enter a limit order and work it.
Here are the specific trades you need to execute this position:
Buy 1 January 2026 (CCJ) $40 calls at………….………$7.75
Sell short 1 January 2026 (CCJ) $42 calls at…………$7.00
Net Cost:………………………….………..………….…..........$0.75
Potential Profit: $2.00 - $0.75 = $1.25
(1 X 100 X $1.25) = $125 or 167% in 16 months.
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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.
