Crazy week for Uranium & Labor Day Weekend

I’m writing this blog from my friend’s place in Ensenada, at the beautiful Ochentos Pizza. I drove down Friday evening, had a nice relaxing weekend, and now I’m contemplating the drive up north.

Last week, the spot price of Uranium went up a lot as the Sprott Physical Uranium fund started building up inventory. I sold all of my call options in CCJ for a solid gain on Friday, then sold slightly out of the money October calls on all my CCJ and UUUU.

I expect a pullback, and this is a good way to take advantage of the price spike while it’s still there. As you can see, this stock just had an amazing run from a low around $15.50 to over $21 in 2 weeks.

That last candle on Friday looks like an exhaustion gap, where buyers pushed the price up to new highs, then sellers came in and pushed the price back down. I expect it to at least test $20, but if it does continue higher I’m happy with the strike price my shares would be called at.

I also bought some puts on EEM last week as it was north of $53 again and I’m thinking that the Chinese tech clampdown and the Evergrande blowup might have spillover effects. I’m still wary of puts after my experience this last 18 months, so it’s a small position.

That’s all for this week, I hope you had a nice holiday weekend.

About johnonstocks

I've been trading stocks since 2003, active on Motley Fool's discussion boards and using first Hidden Gems, then Global Gains. I no longer have the newsletters, but I keep up on the WSJ and read David Rosenberg everyday at gluskinsheff.com. Education: CFA level 2 candidate MBA-focus in Finance, Marshall, University of Southern California - expected Dec 2010. BS Mechanical Engineering, UC San Diego, June 2002
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