Chesapeake Offering Possible 10.38% Return Over the Next 25 Calendar Days

Chesapeake's most recent trend suggests a bullish bias. One trading opportunity on Chesapeake is a Bull Put Spread using a strike $27.00 short put and a strike $22.00 long put offers a potential 10.38% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $27.00 by expiration. The full premium credit of $0.47 would be kept by the premium seller. The risk of $4.53 would be incurred if the stock dropped below the $22.00 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 79.02 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

Why Energy Deal-Making Activity Is Starting to Pick up Again
Wed, 23 Oct 2013 11:22:15 GMT
Motley Fool – After sluggish growth during the first half of the year, global upstream M&A activity is rebounding in the third quarter.

The Zacks Analyst Blog Highlights: Royal Dutch Shell, Chevron, Chesapeake Energy, Schlumberger and Baker Hughes
Wed, 23 Oct 2013 11:19:45 GMT
Zacks – The Zacks Analyst Blog Highlights: Royal Dutch Shell, Chevron, Chesapeake Energy, Schlumberger and Baker Hughes

Don't Knock Talk of Energy Independence
Tue, 22 Oct 2013 22:43:56 GMT
Motley Fool – Energy independence could really happen. That’s because oil companies like Chesapeake Energy, Continental Resources, Marathon Oil, and EOG Resources are getting really good at drawing more oil out of shale …

Will We See a Larger Commitment to Natural Gas Vehicles?
Tue, 22 Oct 2013 17:10:38 GMT
Motley Fool – UPS is not the only company looking at natural gas to replace conventional fuels. So whether it's LNG or compressed natural gas, it appears Chesapeake’s new strategy to let others help promote the use …

Oil & Gas Stock Roundup: Crude Slides Even as Shutdown Ends
Tue, 22 Oct 2013 17:02:44 GMT
Zacks – Energy stocks failed to mirror the broader equity markets' gains last week amid concerns that the 16-day U.S. government shutdown has eroded demand in the worlds biggest oil consumer.

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