Buzz Stocks: Chesapeake Energy Corporation, Transocean LTD, and BlackBerry Ltd

Today's stocks to watch in the news include Chesapeake Energy Corporation (NYSE:CHK), Transocean LTD (NYSE:RIG), and BlackBerry Ltd (NASDAQ:BBRY)

Feb 24, 2016 at 9:48 AM
facebook X logo linkedin

Stocks are falling in step with crude futures this morning. Meanwhile, among specific equities in focus are oil-and-gas names Chesapeake Energy Corporation (NYSE:CHK) and Transocean LTD (NYSE:RIG), as well as smartphone maker BlackBerry Ltd (NASDAQ:BBRY).

  • CHK has soared 10% out of the gate to $2.46, after the firm said it plans to reduce capital spending this year by 57%, and will sell roughly $500 million to $1 billion in assets. Additionally, Chesapeake Energy Corporation said it will make a $500 million debt payment that's due in March. Longer term, it's been a rough ride for CHK, which was down nearly 88% year-over-year heading into today's trading. Speculative players have been betting on more downside, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day put/call volume ratio of 2.20 sits just 4 percentage points from a 52-week peak.

  • Drilling stock RIG hasn't performed much better on the charts, with the shares down 64% from their May 14 annual high of $21.90. What's more, RIG's 8.1% loss this morning puts it at a record low of $7.85. Sparking this negative price action is news that Esso Exploration Angola Ltd. -- a subsidiary of Exxon Mobil Corporation (NYSE:XOM) -- has terminated its ultra-deepwater drilling contract with RIG. Additionally, the shares were hit with a $2 price-target cut to $10 at Zephirin Group. Short-term option traders, meanwhile, are more call-skewed than they've been at any other point during the past year toward Transocean LTD, which will unveil its fourth-quarter earnings report after tonight's close. The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.18 sits at an annual low.

  • BBRY is throwing its hat in the cybersecurity ring, scooping up U.K.-based Encription to help launch its new consulting business, Professional Cybersecurity Services. On the charts, the shares of BlackBerry Ltd have shed roughly 33% year-over-year, including a 2.6% drop today to trade at $7.07. In the options pits, however, speculators have shown a distinct preference for long calls over puts in recent weeks. At the ISE, CBOE, and PHLX, for instance, BBRY's 10-day call/put volume ratio of 24.25 sits above 99% of all comparable readings taken in the past year.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI