Chesapeake (CHK) Offering Possible 7.99% Return Over the Next 11 Calendar Days

Chesapeake's most recent trend suggests a bullish bias. One trading opportunity on Chesapeake is a Bull Put Spread using a strike $23.00 short put and a strike $18.00 long put offers a potential 7.99% return on risk over the next 11 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $23.00 by expiration. The full premium credit of $0.37 would be kept by the premium seller. The risk of $4.63 would be incurred if the stock dropped below the $18.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Chesapeake is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Chesapeake is bullish.

The RSI indicator is at 62.99 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Chesapeake

10-Q for Chesapeake Energy Corp.
Mon, 10 Nov 2014 00:09:45 GMT

Chesapeake Energy Doesn’t Always Cash in When Natural Gas Prices Rise
Fri, 07 Nov 2014 19:58:00 GMT

US STOCKS-Wall St flat after payrolls; Dow, S&P at records
Fri, 07 Nov 2014 17:46:03 GMT

Carl Icahn's Energy Bets Get Worse, Transocean Takes $2.8 Billion Charge
Fri, 07 Nov 2014 12:02:00 GMT

[$$] Drillers Cut Expansion Plans as Oil Prices Drop
Fri, 07 Nov 2014 05:42:13 GMT
The Wall Street Journal – U.S. oil drillers from Texas to North Dakota are scaling back plans to drill new wells next year as crude prices tumble.

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