The Global X Uranium ETF (URA) is an ETF that tracks the Solactive Global Uranium Index which seeks to track the performance of equities involved in the uranium industry. Shares of URA are currently trading at $15.40 in a 52 week range of $13.82-$21.27. URA seriously underperformed the market last year with shares falling by over 27% in the past 12 months. However, despite weak historical performance, options action in today’s trading session has been very bullish and suggests that traders believe URA will be strong through April expiration. Earlier in the session a trader bought 1,000 URA Apr 16 calls for $0.55. Over 4,700 have now traded on that line and today’s option volume in URA is nearly 16 times higher than normal. With URA trading above the Ichimoku Cloud and this extremely bullish order flow we believe that URA sets up well here for a long.
Trade: Buying the URA Apr 16 Calls for $0.60
Risk: $60 per 1 lot
Reward: Unlimited
Breakeven: $16.60