Today we thought we would be buying some PUTS on Cameco Corporation (CCJ) however the market took off with the DOW adding 214 points or 2.61% on optimism for the banks. Our tiny sector took off too, with Denison Mines, for example adding $0.47 or 23.62%. In turn Cameco also gained adding $0.75 or 3.07% by the close in New York.

We are still of the opinion that it is good for a short however timing the entry into such a position is critical to the success of the trade. If we look at the JUN-09 $25.00 PUT (CCJRE) as it was one of the most actively traded we can see that it closed slightly lower at a $1.95 when compared with the previous days close of $1.99. If this stock continues to gain then the likely hood of a correction becomes more of a possibility and the cost of buying the PUTS becomes cheaper. For now we will watch the action closely and try and determine a suitable entry point.

Have a good one.

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