Long LEU
Nuclear energy play
LEU was one of my rare shares-only positions. I saw the nuclear theme coming early, and LEU was my favorite name to express it. The stock picked up serious momentum, and I was up over 100% on the shares very quickly.
As the stock started looking overextended, I began selling covered calls against the position. The calls went underwater as the stock kept running, so I kept rolling them out. Eventually I bought the calls back and sold the shares once I saw momentum fading, locking in around a 100% return on the shares.
It ended up being the right call to take profits when I did. Recognizing when a trade has run its course is just as important as finding the entry. The discipline to sell into strength and not get greedy is what turns a good trade into a realized gain.
