Just a quick note to update you on the progress of June 09 $25.00 Puts that we purchased for $1.40 per contract (CCJRE) on Cameco Corporation (CCJ) recently. Our assessment was that Cameco had ran ahead of itself and that a pull back was imminent.

The trade started well when it closed up 40% the following day, however, Cameco’s stock price then recovered resulting in the value of the Puts dropping back to trade at $0.15 before climbing slightly on Thursday to trade at around $0.40 as the stock price dipped below our strike price of $25.00, however Cameco recovered on Friday and these contracts expired worthless. So its back to the drawing board for us.

Options are extremely volatile so please limit the amount of cash that you place into this sort of trade.

Cameco Corporation has a market capitalization of $10.01 billion, a 52 week high of C$43.60 and a 52 week low of C$11.78, average turnover is was 3.18 million shares and trades and closed on Friday at $25.50. Cameco trades as CCO on the Toronto Stock Exchange and as CCJ on the New York Stock Exchange.

Have a good one.

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