Chesapeake holders throw in the towel
Chesapeake Energy has been crumbling, and one investor expects the weakness to continue.
optionMONSTER's tracking programs detected the sale of about 4,300 September 28 calls for $0.21. A similar number of August 29 calls were bought for $0.02, but volume was below open interest in those.
It appears that the trader owns shares in the energy stock and previously sold the 29s to receive income. He or she now rolling down to the lower strike, collecting $0.19 in the process, while also lowering the price at which they must exit the shares. (See our Education section.)
CHK fell 0.17 percent to $25.71 in afternoon trading, one session after closing at its lowest price since mid-April. It peaked near $30 early last month.
Total option volume is twice average amounts so far today.
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