Here we are in September of 2021. Uranium had some pretty good follow through from yesterday. Bitcoin is hanging around at $47K and Oil is at $68 / barrel. Today we wrote some Bull Calendar Spreads on Energy Fuels ($UUUU) and Denison Mines ($DNN). Given the bullish momentum, we are going to hang onto the calls we are generating into the fall. For uranium the future’s so bright, gotta wear shades.
Uranium Spot Price continues to climb as it nears $35 / pound. This is in part thanks to the Sprott Physical Uranium Trust (SPUT) which continues to act more more like SPUTnik – taking pounds off the market at rocket speed. We are doing our part by purchasing more Energy Fuels ($UUUU) and Denison Mines ($DNN) -mostly in the form of Bull Calendar Spreads. Earth below us…. drifting, falling…. floating weightless. To the moon, diamond hands.
Mondays aren’t half bad when you write covered calls – they are more than just another day. They are a just another profitable day.
Today we wrote bull calendar spreads with the October / December paper on Energy Fuels ($UUUU). We also wrote some bull calendar spreads with the weeklies on Riot Blockchain ($RIOT) and Innovio Pharmaceuticals ($INO). We picked up a few $DNN and would love to see our bids get filled at $0.10 for the October $1.50 paper there.
The year was 1979, Michael Jackson was climbing the charts with hits like “Don’t Stop Til You Get Enough” and interest rates were climbing as well to as high as 11.2%. We haven’t seen that kind of inflation for decades… until recently. I was listening to a podcast with Jonathan Davis (shown here below) where he talked about a new era of rising rates. I tend to agree. We started the first leg up, we are pausing and now heading back up again.
As for our positions, we got called away on Riot Blockchain ($RIOT) and Innovio Pharmaceuticals ($INO) this week. We will get called away on Transocean LTD ($RIG) next Friday. These positions are starting to move, so we will give them room to run with deep out of the money calls and options on the flipside as they do.
Some days I feel like that guy on Swamp People – who sets hooks with bait on them for gators and then checks and resets em day after day… only I set the bull and bear traps with bid and ask price spreads to capture implied volatility in the form of covered calls and cash covered puts.
Today I bought some Denison ($DNN) and did some bull calendar spreads on Energy Fuels ($UUUU). Most of my hooks came up empty.
It kinda feels like inflation is kicking in again. Bitcoin, Gold, Silver, Uranium are all seeing a bit of a rise. Is it a runaway train? Not yet. But we are coming out of the summer doldrums and we bought more of them today.
Uranium continues to creep higher as spot price rose to $33.50 thanks in part to the SPUT (Sprott Physical Uranium Trust) buying more of the physical commodity on the open market.
Today we sold calls / bought Energy Fuels ($UUUU), bought more Denison Mines ($DNN), sold calls / bought Metalla Royalty and Streaming ($MTA), sold calls / bought Innovio Pharmaceuticals ($INO), sold calls / bought Riot Blockchain ($RIOT) and sold calls / bought Canaan ($CAN).
As Phil Collins once sang, “I can feel it coming in the air tonight…” – is the reflation trade coming back? It feels like energy and precious metals have bottomed, and bitcoin is starting to rise again… but then again, look at Iron Ore dropping like a rock – who knows?
Today we bought Energy Fuels ($UUUU), Denison Mines ($DNN) and Transocean LTD ($RIG)