Options Trading News

January 16, 2013  Wed 4:14 AM CT

Uranium producer Cameco has run rapidly since November, and yesterday the option trading was bullish.

optionMONSTER's Heat Seeker system detected unusual activity in the February 22 calls, with the largest trade pricing for $0.70, and the March 22s, which went for $0.90. The volume was above the previous open interest at each strike, showing that new money was being put to work.

Long calls lock in the price where shares can be bought and can provide significant leverage if the stock rallies. But these contracts will expire worthless in the absence of a move. (See our Education section)

CCJ rose 1.23 yesterday to close at $21.48, up nicely from its lows under $17 late last year. More than 10,000 options changed hands in the session and were dominated by 9,300 calls, a reflection of the bullish sentiment.

(A version of this post appeared on InsideOptions Pro yesterday.)
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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