Trade Alert – (CCJ) – TAKE MAX PROFITS

Trade Alert – (CCJ) – TAKE MAX PROFITS

SELL the Cameco (CCJ) January 2026 $40-$42 deep out-of-the-money vertical Bull Call spread LEAPS at $1.95 or best

 

Closing Trade

10-21-2025

expiration date: January 16, 2026

Number of Contracts = 1 contract

Sometimes, extreme leverage works.

Right after I sent out the trade alert for this LEAPS, the entire nuclear sector caught on fire. Investors shortly figured out that the power demands of AI would be astronomical. One of the AI large language apps alone is powerful enough to eat up 25% of the total electrical power output of the US today. Suddenly, opposition to construction of new nuclear power plants melted away.

As a result, this trade has delivered 97.50% of the maximum potential profit, or 160%. The risk/reward of continuing three more months for the last 2.5% until the January 16, 2026 expiration.

I am therefore selling the Cameco (CCJ) January 2026 $40-$42 out-of-the-money vertical Bull Call spread LEAPS at $1.95 or best.

If you bought the stock at $40 as I pleaded with you to do, compared to today’s $96, keep it. We are only at the beginning of a decade-long golden age for new nuclear.

Cameco Corporation (formerly Canadian Mining and Energy Corporation) is the world’s largest publicly traded uranium company, based in Saskatoon, Saskatchewan, Canada. It is the world’s second largest uranium producer, accounting for 11.61% of world production.

My hedge fund buddies are piling into this stock because the nuclear renaissance is just getting started. The electrification of our energy sources is creating immense demand for new electric power sources. China alone plans to build 115 new nuclear power plants putting new upward pressure on fuel supplies. Also, the world’s largest producer, KazAtomProm in Kazakhstan, just announced an 11% cutback in production because of processing shortages (click here).

Nuclear power is also viewed as a backup for new alternation sources for the days when the sun doesn’t shine, and the wind doesn’t blow. Western countries also need to replace Russian supplies of uranium in compliance with sanctions. Even California has moved to extend the life of its sole remaining nuclear power plant at Diablo Canyon by five years (San Onofre and Rio Seco were closed years ago).

Cameco is one of the largest global providers of the uranium fuel. Utilities around the world rely on its products to generate safe, reliable, emission-free nuclear power. The company is meeting the ever-increasing demand for clean, baseload electricity while delivering energy solutions to support the world’s net-zero goals. It doesn’t need wind or the sun to generate nuclear power.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done cancel your order and lower your offer by 1 cent with a second order.

This was a bet that Cameco (CCJ) will not fall below $42 by the January 16, 2026 option expiration in 16 months. It is now more than double that at $96.

Keep in mind that Cameco is one of the most volatile stocks in the market with an implied volatility in the options of 44%. That means that after a big drop, you should see a bigger rise. You don’t have to buy it today. A greater selloff would be ideal. But it should be at the core of any long-term LEAPS portfolio, and it is selling at bargain prices.

To learn more about the company please click here to visit their website.

Please note that these options are illiquid, and it may take some work to get in or out. Executing these trades is more an art than a science.

Notice that the day-to-day volatility of LEAPS prices is miniscule, less that 10%, since the time value is so great. This means that the day-to-day moves in your P&L will be small. It also means you can buy your position over the course of a month just entering new orders every day. I know this can be tedious but getting screwed by overpaying for a position is even more tedious.

Only use a limit order. DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES. Just enter a limit order and work it.

Here are the specific trades you need to exit this position:

Sell 1 January 2026 (CCJ) $40 calls at………….………………$48.00

Buy to cover short 1 January 2026 (CCJ) $42 calls at……..$46.05

Net Proceeds:………………………….………..…………………………$1.95

Profit: $1.95 – $0.75 = $1.20

(1 X 100 X $1.20) = $120 or 160% in 13 months.

 

 

 

 

If you are uncertain on how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.