Buyers mine Cameco for more gains

optionMONSTER

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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