Liz here. You’ll excuse me if I’m a bit extra today. Got a kid home sick from school (thankfully, not Covid), and “The Incredibles” has been playing on loop in the background.
Wham! Pow! Kaboom!
Comic book noises are kind of appropriate for today’s trade, though – not only is it based on a uranium stock (sci-fi!) but Mark sees it headed up 500% or more in the next week.
All thanks to this mysterious “smile chart” he’s been talking about lately…
Mark’s just launched his historic “Profit Revolution” event, where he explains everything about this chart…and how he uses it to potentially turn a tiny $100 stake into $300…$500… even $1,000 in 30 days or less.
Oh, and he’s delivering these plays 5x a week or more – and you only need $100 to get started.
If you missed the event earlier today, you can tune into the replay right here.
Mark’s going to give you a little taste of the pudding with today’s recommendation – a completely free, extra, BONUS asymmetric play, just for the heck of it. (Told you we’d ratchet up the hyperbole today.)
If you squint, you can see the stock name on the “smile chart” above – if you don’t feel like putting your cheaters on, it’s Cameco Corp. (NYSE: CCJ), a name that’s come up a lot lately on Money Morning LIVE.
Here’s Why We (And, Apparently, WallStreetBets) Are Dialing In On Uranium
I’ll confess – when I hopped on the phone with Mark last night, I said “What is uranium for?” In my defense, I had just spent a really long day sitting at the doctors waiting for my kid’s “rapid response” Covid test.
Mark, charmer that he is, said succinctly, “Bombs.” (I think he may be the villain of this episode.) He then amended, “And nuclear power.”
I think our last two or three plays here in Trading Today have been in the sustainable energy space – our experts are all dialing in on the fact that chunks of big money are moving away from fossil fuel and into renewables and nuclear. (In 2020, 21% of U.S. energy consumption came from the sustainable side – the highest percentage since the very early 1900s.) Moreover, the Biden administration is very close to pushing through a $1 trillion infrastructure bill with lots of funding for green energy, particularly nuclear.
In particular, uranium prices have been skyrocketing recently – not because of politics, but because for the first time, individual investors can directly access physical metal.
Uranium doesn’t trade on the open market like most other commodities (I might get Garrett, our resident commodities nerd, to weigh in on this soon). Instead, buyers and sellers have to negotiate contracts privately – I picture this happening in a very dim warehouse with just an oil lamp and a card table, but that’s probably not accurate.
That’s all changed with the launch of a new ETF: the Sprott Physical Uranium Trust (NYSE: U.U), which opened up shop July 19. Now, regular traders have a way to get in on uranium, and they’re not wasting time.
As you can see, uranium spot price has gone straight up like a hockey stick since July, hitting new decade highs:Source: Cameco
Peter Grosskopf, the CEO of Sprott, feels very happy with his gamble in the uranium market.
“We think uranium is entering a new bull market as the world looks for a mix of clean energy in the new green energy revolution,” he says. “If you want a low carbon grid, you can achieve it by spending an enormous amount of money and having a highly inefficient grid, which is inherently unstable, or you include nuclear as a core part of the power base. We think uranium has been underplayed for the last 15 years.”
Forget Peter, for that matter – over on Wallstreetbets, they’re claiming that uranium is entering a new “supercycle” – and as we all know, Reddit calls the shots around here.
How We’ll Make That Fat 500% on CCJ
Cameco Corp. (NYSE: CCJ) itself, one of the big ingredients in the new ETF, is a solid bet in its own right. It produces over 53 million pounds of uranium concentrates every year, holds about 1.7 million acres of land, and supplies all manner of refining and conversion services.
It also just got two nice analyst upgrades from RBC Capital and GLJ research, which, along with all that spot-market buying in the ETF, have sent CCJ soaring:
More germane to Mark’s purposes – it’s got a couple of major “tells” that show it’s headed for asymmetrical returns.
Mark is one of the unique traders who’s kind of evenly split between “Depth” and “Flex” appeal. He pinpoints these very fast-moving, high-return trades that appeal to the “flex” part of the brain, but if you want him to, he can go insanely deep into the methodology behind it all, too.
One of the first things he looks at is low IV (which CCJ has). IV (implied volatility) shows whether the fear and uncertainty surrounding a stock is high or low, and it tends to inflate ahead of known catalysts like earnings. On the flip side, the rapid deflation after earnings (called an IV crush) can put options on sale.
When IV is low, that’s when you should buy options. Because no matter if you buy a call or a put, low IV can produce asymmetrical returns.
It can also protect you from losses at the same time, since the maximum risk on a bought option is the initial premium paid.
If you’re interested in reading the full, in-depth report at Profit Takeover, you can get that for free right here.
And second – Mark’s spotted a whole lot of people buying up options on CCJ, another very bullish sign. Here’s the picture of options flow he sent me:A lot of other details go into how Mark finds these plays – again, you can watch today’s replay and learn much, much more.
“Volume is exploding, and can go even higher,” he said on the phone (over the futuristic gunfire). “What else can you ask for?”
Well, apparently cheap options – and he’s got those, too.
“The calls I’m looking at are only 93 cents right now,” he said – fitting in nicely with his “less than $100″ mantra – “and if you buy them for 95 cents and CCJ gets to $30, they’d be worth 5x.”
“Whoa, how soon?” I asked (I think that’s the biggest projection anyone’s made on a single Trading Today play yet).
“Within the week,” he said cheerfully. So, there you have it.
This is a “Nickel Slots” play with “Dollar Slots” returns. Low risk – high potential reward. The cool thing about it is that Mark’s new project recommends up to 5 of these types of plays every week.
Here’s what to do:
|NICKEL SLOTS: Action to Take: BUY-to-OPEN CCJ October 1 $25.00 Call (CCJ210910C00025000). Pay no more than $0.95. Open as a Good-til-Cancelled (GTC) Order.|
Mark expects a flood of asymmetric trade opportunities like this to hit in the next 30-60 days, so again (and I know I sound like a broken record here) WATCH THE EVENT REPLAY.
I would like to add a personal recommendation of my own to the end of this article: National Beverage Corp. (NASDAQ: FIZZ). My child is singlehandedly driving up their stock price – he just told me, “Stop writing and go get me soda. The doctor told me to drink liquids.” I’m looking at asymmetric gains of at least 100% over the course of this 3-day illness.
I MAY be back tomorrow with a play from the notoriously elusive Shah Gilani – I’ll keep you posted.
November 12 2021