Short-Term Speculators Swarm Chesapeake Energy Corp

Weekly 5/22 options are popular among Chesapeake Energy Corporation (NYSE:CHK) and Transocean LTD (NYSE:RIG) traders

May 19, 2015 at 1:59 PM
facebook X logo linkedin


An ongoing sell-off in crude oil is weighing on a number of energy stocks today, including Chesapeake Energy Corporation (NYSE:CHK) and Transocean LTD (NYSE:RIG). In turn, short-term options traders are wagering on the equities' end-of-week trajectory.

Ahead of this Friday's annual shareholder meeting, CHK is seeing calls exchanged at a slightly accelerated intraday clip. Most active are the weekly 5/22 15 and 15.50 strikes, which Trade-Alert indicates are being bought to open.

Apparently, these bullish bettors aren't scared off by CHK's 2.1% loss this afternoon to trade at $14.58 -- or, from a longer-term perspective, its 25% year-to-date deficit. By purchasing the out-of-the-money calls, the traders expect the stock to topple the respective strikes by this Friday's close, when the weekly series expires.

Shifting our attention to RIG, puts are the options of choice today, doubling the number of calls on the tape. However, not all of these put transactions are of the bearish variety. The largest block to cross involved 5,000 weekly 5/22 18-strike puts, and it appears the lot was sold to open.

In other words, the put writer expects RIG's bleeding will stop. The shares have plunged 5.5% today to hover near $19.05 -- wiping out a majority of their year-to-date gains -- and by selling the puts, the trader anticipates $18 will act as a short-term bottom for the shares.

This confidence in Chesapeake Energy Corporation (NYSE:CHK) and Transocean LTD (NYSE:RIG) isn't necessarily reflected elsewhere on the Street. For instance, short sellers have had a field day on both stocks, as 23.1% of CHK's float and 29.4% of RIG's float are dedicated to short interest.
 

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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI