Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Uranium Stocks
Uranium Price
Our RSS Feed

Uranium Updates

Enter your email address:

Follow Us on Twitter
« ‘Investment Earthquake in the Energy Sector’ Ahead | Main | Cameco Corporation Bought PUTs Today »

Cameco Corporation PUTS Gain 45% in One Day

We are pleased to report that our purchase of the June 09 $25.00 PUTs for $1.40 per contract (CCJRE) on Cameco Corporation (NYSE: CCJ) yesterday have started well by gaining 45% to close at $2.05 today.

Cameco Corporations share price dropped $1.62 or 6.21% to close at $24.47, this in turn had the effect of driving up the value of the PUT contract.

We have tracked Cameco closely with the view to making this trade and posted articles outlining our thoughts and possible strategies which we hope were of some use to you. With options trading timing is critical as it is not a buy and hold vehicle. At one time today we considered closing this trade as a 40% gain in one day is not to be sneezed at, however we are still of the opinion that Cameco could retrace its steps back to around the $20.00 mark.

The next question is the tricky one of the exit strategy. Do remember that Cameco could just as easily bounce back and wipe out any gains that have been achieved.

If you bought and sold all in one day then well done, give yourself a pat on the back.

If you have just bought then you could plan to close at a set percentage profit which you think is achievable, in which case calculate what your selling price would be and place the order now. There are aberrations in the market whereby your target could be met briefly during the trading session so you don't need to watch every tick of the action.

We'll stew on it for now and post as and when we decide to make a move.

Options are extremely volatile so please limit the amount of cash that you place into this sort of trade as you could lose it all if it goes wrong.

Cameco Corporation trades as CCO on the Toronto Stock Exchange and as CCJ on the New York Stock Exchange.

Sleep tight.

For those readers who are new to this site and are interested in the nuclear power sector that is currently coming back to life, you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>