Cameco shares have reached an all-time high as the US plans to increase its uranium reserves. This development follows an increased interest in uranium and nuclear power post-COVID, driven by the necessity for green energy alternatives and the demands of AI technology.<\/p>\n
Shares of Canadian uranium miner Cameco have risen dramatically, now valued at 16 times their COVID low. This surge represents a significant breakout from a classic megaphone pattern, although the shares are nearing their projected target. Spot uranium prices, however, remain below the peaks recorded in January 2024.<\/p>\n
The news about the US boosting its uranium stockpile is a major bullish signal for domestic and allied producers. We saw Cameco shares surge to a new all-time high on this announcement, continuing a powerful trend. For derivative traders, this spike in the stock has probably also caused a sharp increase in implied volatility, making options more expensive.<\/p>\n
We are seeing the stock approach a measured technical target after a significant breakout, which suggests some caution is warranted. It’s important to note that spot uranium prices are still trading below their highs from back in January 2024, currently sitting around $88 per pound. This gap between the soaring stock price and the underlying commodity price might present an opportunity.<\/p>\n
Considering the high cost of options right now, traders might look at bull call spreads to express a positive view while managing costs. This involves buying a call option at a lower strike price and selling another at a higher strike, which can profit from a continued, steady rise. This strategy limits potential upside but significantly lowers the entry cost and risk if the stock stalls.<\/p>\n
For those holding the stock after its incredible 16x run since the 2020 lows, this could be a moment to protect gains. Buying protective puts or implementing collar strategies could lock in profits while still allowing for some upside. This protects against a potential pullback from these record levels, especially if the broader market shows weakness.<\/p>\n
The long-term picture remains strong, fueled by massive electricity demand from AI data centers, which the IEA projected in mid-2025 will nearly double from 2022 levels by next year. This fundamental demand, combined with the U.S. government’s policy to secure a non-Russian uranium supply, provides a solid floor under the sector. We see this as a super-trend that will likely support nuclear energy investments for years to come.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Cameco shares hit record high amid rising uranium demand fueled by green energy and AI-driven power needs.<\/p>\n","protected":false},"author":62,"featured_media":17021,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-30799","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/30799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=30799"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/30799\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17021"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=30799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=30799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=30799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}