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The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2016 put or call options highlighted in this article deliver a rate of return that represents good reward for the risks. We calculate the trailing twelve month volatility for Chesapeake Energy Corp. (considering the last 251 trading day closing values as well as today's price of $25.54) to be 30%.

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