Options Trading Points to NatGas Stock Jump
Traders are banking on shares of Chesapeake Energy to move higher — but not for a few months.
The oil and natural gas company's shares reached a peak near $70 in July, but have fallen hard since then to about $15.25, after spending much of autumn between $10 and $25.
Options activity on Monday is focused on the April 27.5 calls, which were purchased in multiple large blocks for $0.60 and $0.65. That volume more than tripling the open interest, according to OptionMonster's tracking systems.
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Chesapeake has been developing properties for the production of crude and natural gas from underground reservoirs across multiple states and took a huge hit as prices dropped and financial leverage tightened. Today's options activity is taking place as the price of oil has begun to climb again after its long slide.
Big NatGas Players:
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.