Cameco Corp (NYSE: CCJ) released their Q4 2021 EPS results today. The share price reacted with a nearly 15% advance in the price as the company beat quarterly analyst estimates and raised their dividend by 50%. The large call option activity served to enhance today's bullish move. However, one trade suggests that the move isn't over.
Let's take a closer look at that activity and use the Magnifi platform to identify other potential opportunities in the uranium space. You can open a free Magnifi account here!
CCJ Option Activity
The CCJ option volume was sizzling today at over 11 times the 5-day average. Upon closer inspection, it was the call volume where the most activity was on the day. As a result, the 252,000 call contracts traded was over 13 times the 5-day average and 42% being filled at the ask. That displays a strong buy side interest, which is bullish for the stock.
Here is a breakdown of today's big-time option trade:
- 25,000 17 JUN 22 $33 calls bought in 1 print @ $0.65
- 25,000 17 JUN 22 $36 calls sold in 1 print @ $0.42
The above trade is a long call vertical for a $0.23 debit. With 25,000 contracts traded, that carries a notional value $575,000. In fact, because it was traded in one print it reflects institutional level interest coming into the stock. Also, the trade realizes it's max gain of $2.77 per share with the share price over $36 by expiration.
CCJ Magnifi'd
TheoTrade has partnered with a company that is bringing advanced search technology to investing. The company is Magnifi. In the video below, you'll have a chance to see this search technology put to work to explore investments in the uranium mining industry.
Conclusion
The uranium industry has been an area of focus of mine for nearly two years. It's been a volatile ride in companies like CCJ, it's provided significant upside. However, using the data on Magnifi shows that it may not always be about buying an individual company, but rather an ETF that with a particular focus like Global X Uranium ETF (NYSEARCA: URA) or the North Shore Global Uranium Mining ETF (NYSEARCA: URNM). That being said, the option activity points to the bullish expectations for CCJ and, by extension, the industry as a whole.
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