Long calls lock in an entry price and are highly leveraged to movement in the share price. They can double or triple from the shares moving 5 percent to 10 percent, or expire worthless if the stock falls below the strike price.
The oil and natural-gas company's shares rallied 3.64 percent to $29.03 yesterday, so those options are already in the money. More than 50,000 options traded in the name yesterday, but fewer than 7,000 of them were puts, reflecting the overall bullish sentiment.
—Najarian owns CHK long calls.
Options Trading School:
Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.