Cameco Shares Hot, Could Burn Even Brighter Ahead

Shares of Cameco Corp CCJ Thursday jumped more than 9% to close at $27.12 on rising uranium prices amid the Russia-Ukraine tensions.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said the stock is trading more than 2.5 times its average daily call volumes.

“People following this space will know that there was an announcement today that Caxton had taken a $250 million incremental position in the uranium ETF,” he added.

There were buyers of 4,500 of the May 25 calls for an average price of $4.05 per contract, Khouw mentioned. Buyers of those calls are betting that Cameco will rise by at least 7% by May expiration, he said.