This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bullish Trades Flow in Chesapeake Energy

 
 
By Pete Najarian of OptionMonster
 
NEW YORK -- Chesapeake Energy (CHK) has been ramping higher, and Thursday traders were betting on more upside.
 
OptionMonster's tracking systems found bullish trades in the November Weekly 28.50 calls that expire two weeks from today. More than 5,500 of the contracts changed hands, including a single print of 4,494 that was purchased for the ask price of 76 cents. The volume was far above the previous open interest of just 225, showing that this is fresh buying.
 
These calls lock in the price where the stock can be purchased, letting investors cheaply position for a rally and enjoy potentially significant leverage if one occurs.
 
Chesapeake shares rose 3.96% to $28.37 Thursday and are up 72% so far this year. The company is involved in the acquisition, exploration, development, and production of natural gas and oil.
 
Energy has been a standout theme for months in option trading, so it's not a huge surprise to see this name light up our scanners. Citi upgraded Chesapeake to a "buy" from "neutral" Thursday and raised its price target to $35 from $27.
 
Total option volume was twice its daily average for the last month. Some 33,600 calls traded versus about 18,600 puts, reflecting the session's bullish tone.
 
Najarian owns CHK calls.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FB $86.62 1.00%
GOOG $520.92 0.08%
TSLA $269.34 0.40%
YHOO $39.28 -0.04%
AAPL $126.27 0.67%

Markets

DOW 17,724.67 +105.16 0.60%
S&P 500 2,075.12 +12.01 0.58%
NASDAQ 5,008.3940 +21.5270 0.43%

Free Reports