Energy Stock Spotlight: Twin LEAPS Drive Unusually Active Options Play

Market Overview - The government shutdown did not negatively impact the markets, with the S&P 500 and Dow Jones Industrial Average achieving record closes, the S&P 500 surpassing 6,700 for the first time [1] - There was significant options activity, with 1,328 calls or puts generating Vol/OI ratios of 1.24 or higher, indicating a busy trading day [1] Options Activity - Among the 1,328 options, 858 (65%) were calls and 470 (35%) were puts, reflecting a bullish sentiment in the market [2] - The top 10 Vol/OI ratios for calls ranged from 258.77 for Ke Holdings (BEKE) to 45.08 for Microsoft (MSFT), highlighting strong interest in specific stocks [2] Energy Fuels (UUUU) - Energy Fuels had the second and ninth-highest Vol/OI ratios for call options, at 180.17 and 61.73 respectively, indicating significant trading interest [3] - The stock is currently favored due to investor enthusiasm surrounding uranium miners, positioning it as a notable player in the rare earth and critical minerals sector [4] Call Options Analysis - The $17 call option for Energy Fuels has a long expiration date of approximately 28 months, providing a substantial timeframe for potential price movements [5] - The net debit for this call option is $8.10, which is 52% of the stock's closing price of $15.71, indicating that the stock must appreciate nearly 60% to break even [6] - With an expected price movement of 78.24% over the next 842 days, the option has a decent profit probability of 36.99% [6]