$CCJ call buyers keep scoring at highs

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

On Jul. 15, Market Rebellion’s UOA Service identified the purchase of 13,500 September $17 calls as part of a bullish spread for $1.49 with shares at $15.56. This was clearly a new position, as open interest in the strike was only 857 contracts before the trade occurred.

Those calls changed hands for $9.45 this session, 6 times their purchase price. The stock rose 69.73% in the same time frame, illustrating the kind of leverage that can be achieved with options.

This marks the second winning trade in the name to be posted on Market Rebellion in as many sessions.

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 up by 0.12% to close at $24.46. The uranium producer is setting new multi-year highs this session.