Cameco Corp. (CCO:TSX; CCJ:NYSE) — the godfather of the uranium trade — has moved to all-time highs, with the spot price hitting US$80.00/lb.
From Trading Economics:
"Uranium prices in the U.S. surged past US$80 per pound for the first time since January 2008 in November, soaring past pre-Fukushima disaster levels amid high demand and risks to supply. Fossil fuel volatility and decarbonization goals drove countries to extend the life of existing generators and increase investments in new plants, led by China's pledge to build another 32 nuclear reactors by the end of the decade. The optimistic demand outlook aligned with lower nuclear fuel inventories for utilities, triggering large near-term purchasing activity. The latest data showed that European inventories fell by 21% since 2018. Supply of enriched uranium has turned scarce as Western generators shunned a portion of Russian nuclear fuel, compounding shipping halts due to insurance restrictions and stressing capacity limits for Western enrichers. Additionally, some miners in Niger suspended operations due to the country's coup, while Canada's Cameco revised production for the year sharply downwards."
The CCJ March US$40 calls closed at US$7.00, and I am using the proceeds of the sale of the SPY calls to add to the position by way of the March US$45 calls:
- Buy 20 calls CCJ March US$45 at US$4.25 limit
- Target is US$52-55 by year-end.
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- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Cameco Corp.
- Michael Ballanger: I, or members of my immediate household or family, own securities of: Cameco Corp. My company has a financial relationship with: Cameco Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
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