How To Trade This Soaring Mining Stock

Cameco Corp. CCJ, the world’s largest publicly traded uranium miner, has been moving sharply up as the nuclear energy industry enters a renaissance. CCJ’s recent move is outsized, but this chart has a strong upward trajectory for the longer-term investor over time.

That said, a fade to support may be on the horizon. Both short-term and long-term traders can benefit from a move like this with a simple calendar spread. 

The trade we’re going to use is a call calendar spread. A long calendar spread generally presents as a debit spread with limited risk parameters. The trader sells a call in a near month and buys the same strike in a month that is further out into the future. If the short strike expires worthless, which is what we hope will happen in an ideal scenario, the long call will be positioned for unlimited upside if the stock price continues upward. 

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With Cameco’s relative resistance zone sitting right around $68 and support sitting near $54 – the low edge of the recent gap created by the candle of May 22, 2025 – here’s our trade:

• Sell to open 1 18Jul 65 call 
• Buy to open 1 19Sept 65 call 

At this writing, the position creates a debit spread of $2.78. This represents the total risk of the trade. 

The breakeven prices of the stock at expiration on this trade are calculated by adding the debit to the strike, which is $65 = $65.00 + $2.78 = $67.78 plus commissions. 

The three things to keep in mind for when to exit the trade are:

1. Set alerts for $53.80 and $65.00 – this will give you a heads up if the chart is breaking support or breaking resistance and will also shed light on whether to close the trade or not. 
2. The ideal formation for this trade results from the failure of the price to hold above $65 until after the July expiration. If this happens, you’ll have the opportunity to sell another option against the Sept 65 expiration, potentially the August 65 strike or a September strike above $70 if price action continues to move north, thereby decreasing the breakeven price.
3. Sell the position if the trade breaks your risk parameters for loss or gains. If you have no intention of buying the stock, set a threshold for profit. I like to use 1:1 risk-to-reward for these kinds of calendar spreads.

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