$CCJ call buyers score at highs

Option traders are scoring big gains on upside positions in Cameco (CCJ) today.

On Aug. 19, Market Rebellion’s UOA Service identified the purchase of 10,000 September $15 calls as part of a bullish spread for $1.10 to $1.14 with shares at $15.56. This was clearly a new position, as open interest in the strike was only 3,061 contracts before the trade occurred.

Those calls have changed hands for $15.00 this session, 13 times their purchase price. The stock rose 52.63% in the same time frame, illustrating the kind of leverage that can be achieved with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

CCJ was last up by 4.44% to $23.97. The uranium producer is setting new multi-year highs this session.