Burned by Chesapeake

Wednesday, 18 Apr 2012 | 1:56 PM ET

A long position in Chesapeake looked like a hot trade, but all it did was burn trader Stephen Weiss.

Weiss made the bullish call back on March 13th.

“I like Chesapeake,” he said at the time. “I think Aubrey McClendon is one of the best CEOs in the natural gas industry. I think there’s tremendous value there. The partnership with KKR they announced last week. I think that’s a very good stock.”

Unfortunately a good CEO doesn’t necessarily translate into good price action. Since Weiss suggested a long position shares have plunged almost 30%.

What's the trade, now?

“I haven’t changed my opinion,” said Weiss on Wednesday April 18th.

”I don’t own the shares but I still think McClendon is a tremendous CEO. Of course, the issue with the stock is the price of nat gas.”

Gartman on Spain's Bond Auction & Oil Futures
The FMHR traders discuss their thoughts on Chesapeake Energy. The stock is down 21% year-to-date. Also, Dennis Gartman, The Garman Letter, weighs in on the Spanish bond auction tomorrow and how it could impact oil futures and the U.S. dollar.

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Trader disclosure: On Apr 18, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long IBM; Joe Terranova is long MCD; Joe Terranova is long EMC; Joe Terranova is long GS; Joe Terranova is long JOY; Joe Terranova is long HPQ; Joe Terranova is long LQD; Steven Grasso is long ASTM; Steven Grasso is long AVAV; Steven Grasso is long BA; Steven Grasso is long D; Steven Grasso is long FRO; Steven Grasso is long LNG; Steven Grasso is long MHY; Steven Grasso is long NUAN; Steven Grasso is long MO; Steven Grasso is long PFE; Steven Grasso is long PRST; Steven Grasso is long S; Steven Grasso is long XLU; Steven Grasso is long ZAZA; Steven Weiss is long HAIN; Steven Weiss is long EUO; Steven Weiss is long TBT; Steven Weiss is long TBF; Steven Weiss is long ZCOM; Steven Weiss is long HPQ; Steven Weiss is long BRCM; Steven Weiss is long CSC; Steven Weiss is long HKNZ; Steven Weiss is long AAPL; Steven Weiss is long JPM; Steven Weiss is long SNDK; Steven Weiss is short X; Steven Weiss is short MT; Steven Weiss is short FXA; Steven Weiss is short ERIC

For Brian Kelly
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Brian Kelly is long AUSSIE $
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