Selling CCJ puts for income.
Cameco Corp is a profitable uranium mining company. Uranium will be an increasingly important resource for the world’s energy market as more electricity is generated and countries strive to manage pollution.
The stock has established a strong long-term uptrend but recent market weakness caused CCJ to pull back near a key support trend line. This sets up a good opportunity for us to collect income while expecting CCJ to continue it’s long-term bull trend.
By selling the January $21 puts near $1.10, we’re able to collect an annualized yield above 45% while also giving us more than $1.00 per share in cushion between the current market price for CCJ and our strike price.
- Sell (to open) 3 CCJ January 21st $21 puts
- Limit: $1.10 or more
- The new position will represent roughly 6.6% of our model.
- 12:40 Executed
- Sold 3 CCJ Jan 21st $21 Puts @ $1.19