$CCJ call buyers are scoring at highs

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

On Feb. 28, Market Rebellion’s Unusual Activity Service found that 3,000 April $26 calls were bought as part of a complex bullish spread for $1.57 above open interest of just 265 contracts with shares at $24.56.

Those calls changed hands for $4.70 this session, nearly 3 times their purchase price. The stock rose 22.8% 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 down by 0.51% to close at $29.04 after reaching a new 52-Week high of $30.49 earlier in the session.