Chesapeake Energy sees 2018 puts
Traders are positioning for a possible drop in shares of Chesapeake Energy in the next two years.
optionMONSTER's Depth Charge market scanner shows that more than 22,000 January 2018 3 puts were sold for $1.80 to $1.99 yesterday, including a single print of 17,000 that went for $1.97. Volume was more than 6 times the open interest in the strike, which indicates that new money was put to work.
Long puts lock in the price where a stock can be sold, so they make money to the downside. Investors use them to hedge long positions or to speculate on a drop. (See our Coaching section)
CHK fell 2.74 percent to $3.19 yesterday and is down 54 percent in the last three months. The oil and natural-gas producer is expected to report earnings before the market opens on Feb. 24.
Total puts in the name outnumbered calls by a bearish 4-to-1 ratio.
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