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.
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Big NatGas Players:
BP
Anadarko Petroleum
CVX
Exxon Mobil
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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.
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