Cameco Corporation (CCJ) is a company that mines, refines and develops uranium for use in nuclear power facilities in Canada. The company’s stock is currently trading around $24.00 in a 52 week range of $17.27-$25.84. The stock has been relatively strong this year with shares rallying 15.5% year to date. Options traders seem to think this trend is over as orders hitting the tape today are very bearish. Earlier today a trader bought 2,896 CCJ Apr 23 puts for $0.45. This is an aggressive trade as the stock has just made a new 52 week high. We believe that this order flow in CCJ could set up well for an aggressive short position via options.
Trade: I bought the CCJ Apr 23 Puts for $0.50
Risk: $50 per 1 lot
Breakeven: $22.50