Most point to a recommendation by Jon Najarian on CNBC. He claims that the option activity on Cameco represents a ‘tell’ and that the stock should be moving higher based on in-the-know institutional investors.

Note the large price and volume movement on the 20th and 21st.

At least short-term options movement supports Najarian’s claim, as the call to put ratio is close to 4-1 for the front month November contract.

With May options contracts expiring today (May 15th) I thought it would be interesting to look ahead to the upcoming June contracts in light on the recent Cameco share price gains.

After doing a quick scan of the soon to be front month June contracts we can see a bullish signal, as the open call interest is 20247 vs an open put interest of 14505. This creates a ratio of 1.395.

Today also shows an increased volume level on the call side, with 507 contracts changing hands at the 25 strike level. The 25 strike level is also exhibits the highest open interest on both the call side (4440 contracts) and the put side (2267).

Do option traders really have a leg up on the ‘regular joe’ or are they working with the same data set? I guess, at least in the short term, we’ll find out near the end of the June contracts, which are set to expire on June 19th.