Let’s get things straight, I’m an investor - not a speculator. But, when I own a stock, I get intament with it, and often trade calls around owning it. When @coffeygrinds said Cameco could see a $50 bid from China Nuclear, a bunch of clues fit together. None of them are solid, and you might be dissapointed after reading this, but here is a summary of my last 2 weeks in Cameco.
I was short CCJ 2010 $50 puts. Position was going against me for a couple months, but that was okay with me. Then, on May 2nd, I woke up to find somebody excercised them early.
http://twitter.com/jmclarty/statuses/801857120
Sweet, he ate the time premium. It was only a few points, but none the less a little bonus. But think about this, he would have had to send that order on the 1st of may, check out the chart where that puts CCJ. I thought nothing of it on May 2nd, but by May 8th,
http://twitter.com/jmclarty/statuses/806412897
it’s was as if he knew something and wanted to get out of a very illiquid position and quickly.
That was reason #1.
#2 - I was worried about the earnings, I sold calls, because I was worried and I was ready to part with my stock for $45 if it hit it. I twittered I sold $45 calls for june. I’m just proving that I was skeptical on the earnings.
They missed, the stock sold off in the AM, and analysts setiment was mixed to mildly bearish. The stock closed even - that’s the wierd part. I was in Cancun so didn’t think much of it, and tweeted:
http://twitter.com/jmclarty/statuses/810572538. The stock not selling off after both I predicted it, and the results coming in warranting a sell-off, is point #2. Don’t worry, I covered my calls for $0.10 more than I wrote them for, after Andy Coffey’s tweet - see point #4.
#3 you got some crazy action on the front month calls and IV climbing.
http://twitter.com/jmclarty/statuses/812825420
#4 @coffeygrinds twittered
http://twitter.com/coffeygrinds/statuses/812798240
you could add a #5, that the stock is definately moving north on no news.
…The part where I’m skeptical is China National Nuclear ready to anti up the +$20B? That’s the million dollar question, and why I’m not more bullish.
But I’m long the stock, and short puts, cause I don’t mind owning more in the $35 range.
Recent Comments