Good morning, Power Profit Traders!
Don’t forget — I am LIVE at 9:30 a.m. ET every morning RIGHT HERE, and considering all the exciting things going on with the Bitcoin (BTC) exchange-traded funds (ETF) hitting the market, I have a LOT to talk about these days.
On the Money Morning LIVE pre-market show yesterday, in fact, I touched on quite a few hot cryptocurrency topics, like what I’m seeing around Ethereum (ETH) and even (gag) Dogecoin.
Today, though, I want to talk about another asset that’s nearly gone viral lately:
Uranium prices.
Specifically, I want to dive into a STOCK that’s gone viral in my Morning Report tool — and I want to show YOU how to spot stocks and options attracting feverish attention for yourself.
Hunting the Hunted
If you haven’t already downloaded my TG Suite app, that would be Step 1. You can follow the instructions right here.
Once you open the free Money Report tool, at the bottom you’ll see an option to select Stocks in Multiple Tables.
This shows you the stocks that appear in more than one of my Morning Report Watchlists.
Seeing a ticker show up multiple places indicates there is a lot of activity around that stock and its options that day… In other words, it suggests the stock may be going viral, as the kids say, for one reason or another.
Selecting the Stocks in Multiple Tables option last night populated this list:
You can see that a trio of stocks showed up in three of my six Morning Report Watchlists: uranium concern
Cameco (CCJ), electric vehicle maker
Tesla (TSLA) —
discussed yesterday — and delivery firm
Uber (UBER).
So let’s dive into the top stock on that list, CCJ, and figure out why and where it’s attracting so much attention.
Digging deeper indicated that CCJ appeared on these lists: High Volume, Unusually High Call Option Volume, and High Open Interest.
Because open interest (OI) is a cumulative thing, we’re going to focus our attention on the volume-related tools, which consider just one day’s worth of data.
CCJ’s $25-strike call expiring Dec. 17 was No. 4 on our High Volume list, with nearly 31,000 contracts traded on Wednesday.
This data is updated after the closing bell each session, and tells us which specific options — not specific stocks — saw elevated daily volume.
The data doesn’t indicate whether the options were bought or sold, only that they were extremely active.
Even more interesting, CCJ’s deeper out-of-the-money (OTM) $33-strike call, also expiring Dec. 17, was No. 1 on the Unusually High Call Option Volume list.
This data is also updated after the closing bell each session, pulling specific stock options that generated — you guessed it! — bigger-than-usual call volume that day.
From any of the app tools, if you
click on the ticker itself, it takes you to a handy daily chart.
Clicking on CCJ shows us the stock just elbowed its way above previous highs, and is trading in the $27 neighborhood. Just in August, CCJ was fetching only around $16, so it’s rallied pretty hard and fast.
Digging deeper, it seems CCJ may be following in the footsteps of
uranium prices, which recently touched their highest point since just after the Fukushima disaster, amidst a wind and hydropower shortage in the European Union.
Plus, Cameco is expected to report earnings Oct. 29.
One can deduce, then, from the Morning Report tools that option traders are expecting CCJ shares to climb even higher after earnings, and they’re buying December-dated calls to speculate.
That’s it for now, but don’t forget to watch me right here at 9:30 a.m. ET! There is a LOT going on in the stocks, options, and cryptocurrency markets, so we have much to discuss, Power Profit Traders.
See you in the room!
