Uranium’s Going Crazy – Play CCJ with a $1 Trade
Mark’s Watchlist
- United Airlines Holdings Inc. (Nasdaq:UAL)
- ProShares Bitcoin Strategy ETF (BITO)
- Transocean LTD (NYSE:RIG)
In addition to these three stocks, I’ve got a slew of earnings names on my list today.
Johnson & Johnson (NYSE:JNJ) reported great earnings this morning…
While Procter & Gamble Co. (NYSE:PG) is a wet blanket.
Halliburton Company (NYSE:HAL) reported a profit, but its revenue missed estimates.
And after the close, we’re looking ahead to UAL and Netflix Inc. (Nasdaq:NFLX) for some fun earnings plays.
If you want to get ahead of the earnings trades, then you need to join Kenny Glick in the Warlock’s War Room.
Over the next few weeks, Kenny’s talking earnings immediately after opening bell every day the market’s open.
- United Airlines Holdings Inc. (Nasdaq:UAL)
Last week, we saw a slew of banks reporting third-quarter earnings. This week, we’ve got airlines – UAL being one of them.
Frankly, there’s a ton of headline risk in airline earnings right now because of fuel cost. On the other hand, that reopening trade looks ready to pop – so really, this week could go either way for names like UAL, and I’m keeping a close eye on the report.
- ProShares Bitcoin Strategy ETF (BITO)
The first Bitcoin futures ETF starts trading today. And I’m going to go out on a limb here and say that we’re going to see the peak of this product today.
This thing is just like UVXY. It’s a broken futures product, and it’s destined to go down – which is bad for other Bitcoin-heavy names like Square, Overstock, Riot, you name it.
Look – if you want to be long Bitcoin, then buy Bitcoin… not BITO. This thing is a wealth trap, and it’s going to be soul crushing. I can’t wait for them to list options on this… we could make a ton of money in puts here.
- Transocean LTD (NYSE:RIG)
I love RIG, and I have for a long time. Depending on how long you’ve been a Profit Takeover reader, you know that. It’s been spinning its wheels – but at some point, this sucker is going to move:
If oil prices keep ripping, RIG will be $5 just like that. And I’m looing at the January 21, 2022 $4 calls for $0.60 as an inexpensive way to profit.
VIX Traffic Light
Yesterday’s volatility forecast holds true today, as the SKEW index continues to get cheaper.
VIX October options and futures expire tomorrow, and I think we’re looking at the lowest futures settlement since the COVID panic. The VIX could settle below 16 here.
But remember – we don’t have to worry about a sell-off quite yet. Once the VIX hits 11 or 12, that’s when we’ll start to brace ourselves.
For now, enjoy the S&P’s ride higher through the end of the week.
Today’s Impact Money Trade
Uranium continues to be a crazy trade. Just check out this close and roll on Cameco Corp. (NYSE:CCJ):
This customer was long the December $30 calls – and then, they sold 8,000 of them for a nice premium.
But they didn’t immediately pocket it. They took that premium, and they bought two 20,000 lots of the December $36 calls:
We’re looking at some massive upside speculation in uranium right now, and this customer is looking for CCJ to make another leg up.
It’s not the only name we’re going to see hitting headlines either. Denison Mines Corp. (NYSEAMERICAN:DNN) could go from a $1.80 stock to a $3 stock…
And CCJ, which opened at $27 this morning, could hit $40 before the end of the year.
So… how do you play it?
I’ll tell you this – I’m definitely interested in piggybacking this trade.
I’m looking to do something pretty similar to this big-money buyer. But it’s actually cheaper to buy in January than December.
So, I’m looking to buy the January 21, 2022 $30 calls and sell the January 21, 2022 $36 calls, creating a call spread that only costs about $1.
This will pay off great if CCJ moves higher into January.
Until next time,
Mark Sebastian
Founder, Profit Takeover
Comments
October 19 2021
Leave a Reply