CCJ 70-80 Call Spread Sees $1.4M Bet—Trade Now Up 10.5% as Stock Rallies Past Resistance
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High-Volume Call Spread Registers $1.4 Million Outlay as Trade Quickly Gains 10.5%
A large-scale options call spread trade on Cameco (CCJ) crossed the tape early today: 10,004 spreads at the 70/80 strike were bought at a VWAP of $2.78, representing an upfront outlay just above $1.4 million. In under an hour, the position showed a mark-to-market gain of $0.29 per spread, or 10.5%, as CCJ's share price advanced by $0.25 to $70.27. The underlying trade and key metrics are summarized below for clarity.
| Parameter | Details |
|---|---|
| Options Expiration | 18-Jul-25 |
| Options Strikes | 70-80 Call Spread |
| Number of Contracts | 10,004 |
| Days to Expiration | 32 |
| VWAP Trade Price | 2.78 |
| VWAP Bid/Ask | 2.65 / 3.00 |
| Stock Reference Price | 70.02 |
| VWAP as of 10:20:00 | 3.08 |
| Instant Mark-to-Market Gain | 10.5% |
For more detailed multi-leg option analytics, see the CCJ Multi-Leg Trade Analyzer.
Buyers Risk $1.4M for $3.6M Potential—Stock Must Clear $80 for Maximum Payout
Why did this trade catch attention? At current pricing, buyers paid $2.78 per spread, risking over $1.4 million for a possible max payout of about $3.6 million. This requires CCJ shares to close above $80 at July expiration—an 11% move in just 32 days. The setup suggests an aggressive but calculated outlook that further price strength or a sharp rally could materialize in the near term. Is this a bold speculative wager or a directional hedge against a much larger underlying position? Only time (and more trade flow) will tell.
Technical Analysis: Momentum Strong, Price Surges Past Resistance
The technical picture aligns with the trade's bullish bent. CCJ surged 5.42% on the day, up 3.61 points to $70.27, and decisively broke through its expected daily resistance at $68.70. The move extends a rapid rally that has seen the stock soar 20% in two weeks and 35.2% in a month—far outpacing the S&P 500 ETF (SPY) by a wide margin in all measured periods. Below is a snapshot of CCJ versus SPY returns by timeframe:
| Duration | CCJ Return | SPY Return | Low | High |
|---|---|---|---|---|
| Today | +5.4% | +1.2% | 68.27 | 70.80 |
| 2 Weeks | +20.0% | +2.5% | 58.18 | 70.80 |
| 1 Month | +35.2% | +2.9% | 50.03 | 70.80 |
| 3 Months | +68.1% | +9.8% | 35.00 | 70.80 |
| 6 Months | +29.4% | +0.5% | 35.00 | 70.80 |
| 1 Year | +33.1% | +12.6% | 35.00 | 70.80 |
| YTD | +36.7% | +3.3% | 35.00 | 70.80 |
| 3 Years | +204.4% | +66.5% | 20.34 | 70.80 |
| 5 Years | +593.3% | +108.9% | 9.01 | 70.80 |
Short- and long-term moving averages reinforce the positive trend, with the 20-day average at $59.26 and the 50-day at $50.25—both significantly below the current stock price. Year-to-date, CCJ is up 36.7% vs SPY’s 3.3%. Performance metrics and the technical uptrend support the notion of persistent bullish momentum.
Option Skew Indicators Reinforce Bullish Market Stance
The Market Chameleon 30-day implied volatility skew ranks at 75% (out of 100), signaling an above-average bullish sentiment versus its 52-week history. The skew analysis reflects options traders anticipating more upside volatility in the near future, and, combined with strong price momentum, the data presents a forward-looking optimistic posture.
What Does This Mean for Traders?
The convergence of aggressive option activity, technical momentum, and a bullish volatility skew raises key questions: is the market anticipating a significant near-term catalyst, or is this institutional-sized call spread a protective play in disguise? While no trade is a guarantee, this multi-million dollar wager sets a benchmark for bullish positioning and signals traders should pay attention to both price action and option flows.
To explore more trades like this or screen for unusual multi-leg options activity, check the Multi-Leg Option Trades Screener for updated flow and analytics.
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