By Pete Najarian, co-founder of OptionMonster
NEW YORK -- Uranium producer Cameco (CCJ) has run rapidly since November and Tuesday the options volume was bullish.
OptionMonster's tracking systems detected unusual activity in the February 22 calls, with the largest trade pricing for 70 cents, and the March 22s, which went for 90 cents. The volume was above the previous open interest at each strike, showing that new money was being put to work.
Calls lock in the price where shares can be bought and can provide significant leverage if the stock rallies. But these contracts will expire worthless in the absence of a move.Cameco rose 1.23% Tuesday to close at $21.48, up nicely from its lows under $17 late last year. More than 10,000 options changed hands in the session and were dominated by 9,300 calls, a reflection of the bullish sentiment. Najarian has no positions in CCJ.
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