Thread by @BambroughKevin

More thoughts on the @Official_WSB crowd jumping on the uranium trade…

Wallstreetbets’ laid out the obvious uranium bull market story well on Reddit a couple days ago. 10mm followers and you can see in the market they are now taking action.

#uranium #memestocks #uraniumsqueeze

It’s such a compelling theme and imho has the greatest certianty of working out fantastic of any commodity bull I’ve ever seen or read about in history. Why?

Cause it’s a super tight commodity that takes years to materially expand supply. Utilities will be $500/lb plus if they have to and the total market size is just so tiny it’s crazy. The world richest 100 people see there net worth’s fluctuate more than the entire sector daily

Absolute pos companies like $gme stock have had similar market caps to the entire sector. Fucking retail video game seller that has fuck all profit potential and just leases it’s stories vs 11 percent of world electricity fuel. #fuckme!

Anyhow so here’s what’s now happening. The $gme stop Reddit crowd with the help of wallstreetbets #wsb is jumping in the game. These guys know how to create a squeeze and max returns for themselves. In the initial #wsb post they suggested buying calls in $CCO juniors and $u.un

On Friday $ccj and $cco (USA and Canadian listings for Cameco 2nd largest uranium producer) were sprinkled all over the list of top traded stock options on the exchange obviously this surge is the #wsb gang taking action. Plus we’ve had two big days on $u.un and uranium juniors

The exiting part is that this is the very strategy they used on $gme and $amc. They are crazy aggressive and work as a mob and are buying option contracts in near months. Meaning options that expire soon like sept - dec etc.

So what happens when they do this? Well, brokers, hedge funds etc. They see lots of bids to buy cco options at $25, $30 or $35 dollars etc and with healthy premiums. So they decided it’s worth the risk to reward to ‘write covers calls’. So they sell the call option and buy stock

Sorry but if I’m not explaining this well enough to newbies but the essence is that by simply buying lots of calls in stocks like cco they create buying in the stock by brokers, funds and speculators. So it really makes their money impactful on a stock and in this case a sector

Uranium play is just now starting for them so we can expect much more inflows and volatility… much much more. As per the investment case laid out by $wsb everyone knows they should first focus on loading up on the Cameco calls and the junior miners before squeezing $u.un

Understand this.. the plan is to first load up on #uranium sector torque then buy $u.un likely with the same strategy. They will start bidding for calls and create massive demand for the stock as brokers come to write the covered calls

So when I see the huge volume in Cameco calls it gives me a great feeling of certainty that there will be much more $u.un demand coming. Much more. Consider how much $cco market cap has lifted this week 20.45% or $1.82bln vs $u.un ~$1bln total cap

I expect they will get aggressive in the coming weeks on $u.un as well and we could easily see it double and take the uranium price up with it. Some people have been doubting my predictions and calling me a hyper and pumper. But I’m just laying out the facts as I see them

After decades in the investment world I understand the mechanics of how money flows and different players interact. I’ve studied the uranium sector for 20 years and rode it from bottom to top 2003-2007

I didn’t own a single uranium stock for the last decade but I watched knowing at some point I’d get my shot at a 2003-2007 run again. Covid washout I bought my first stocks in a decade March 2020. Cco mine shut downs due to covid made me double and down my positions

Sprott taking management of $u.un made me add more buy physical uranium to front run them.

All the while I’ve been watching the $gme $amc action and have believed they will come. Cause this trade is so perfect for them.

So just be careful my early #uranium loving friends…

We are about to enter a new phase.. the uranium mania is now just starting again and you can take your models and your technical analysis and toss for get about them for a few months. They will hurt you more than help you. You got to hold on for dear life now

The robinhood/weathsimple gang is coming and wallstreetbets just applied a cattle prod to the bulls balls.

Look at the charts of $gme and $amc and be honest where you would have sold. If you were in early 99.9% you have been out at a fraction of today’s price.

I hope those of you that did hard work and believe in the benefits of nuclear power to fight climate change will be able to hang on and prosper. Then allocate capital to other good themes and causes. Don’t let them shake you out.

I know I’m gonna get lots of questions and dms about ‘covered calls’. The basic concept is that sophisticated investor look for the opportunity to sell a call option while owning a stock. The risk of owning the stock is more than offset by the value of the call they sell. Google