Here we have,
$$w = z + \frac{1}{z}$$
$$\therefore u + iv = x + iy + \frac{1}{x + iy}$$
On solving and comparing the real and imaginary parts we get,
$$ u = x(1 + \frac{1}{x^2 + y^2})$$ and
$$ v = y(1 - \frac{1}{x^2 + y^2})$$
What's next from here?
Here we have,
$$w = z + \frac{1}{z}$$
$$\therefore u + iv = x + iy + \frac{1}{x + iy}$$
On solving and comparing the real and imaginary parts we get,
$$ u = x(1 + \frac{1}{x^2 + y^2})$$ and
$$ v = y(1 - \frac{1}{x^2 + y^2})$$
What's next from here?
Let $ z=x+iy$ and $w=u+iv$. Then, $w=z+\frac1z$ becomes
$$u+iv= x+iy +\frac 1{x+iy}= x+iy +\frac{x-iy}{r^2}$$
Equate the real and imaginary parts, respectively, to get
$$x=\frac{r^2 u}{r^2+1},\>\>\>\>\>y=\frac{r^2 v}{r^2-1}$$
and substitute above into $x^2+y^2=r^2$ to obtain
$$\frac{r^2u^2}{{(r^2+1)^2}}+ \frac{r^2v^2}{{(r^2-1)^2}}=1$$
which represents an ellipse centered at origin, with the major and the minor axes of $\frac{r^2+1}{r}$ and $\frac{r^2-1}{r}$, respectively.