I should change my friggin name to black cloud. I jump into the energy sector and buy chk and look what happens, the prices for oil and natural gas tumble. Iam so bad at stocks, i should actually start a pick service selling the opposite of my picks.
Okay heres the question if anybody knows anything about this stock, should i take my 6 dollar a share loss and get out of it now or hang onto it.
thanks for any help
cd
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I should change my friggin name to black cloud. I jump into the energy sector and buy chk and look what happens, the prices for oil and natural gas tumble. Iam so bad at stocks, i should actually start a pick service selling the opposite of my picks.
Okay heres the question if anybody knows anything about this stock, should i take my 6 dollar a share loss and get out of it now or hang onto it.
CHK has been a rocket the last couple of months. You have to be careful with natural gas this time of year since prices normally bottom in July, CHK is natural gas. Although the price of nat gas really has little bearing on CHK since much of their gas is hedged (albeit at around $9-$10 instead of the $11-$13 the market has been at lately)
I would try to wait it out until after earnings are released in the next two weeks. The CEO has a habit of releasing good news to jump start the stock when it stalls a bit. I would expect him to make a more detailed announcement concerning the productivity of their Haynesville shale wells so far, which by all accounts to now, should be quite nice.
It has had previous support at $57-$58 and that is also the level that the 25 million shares of the new offering was released at last week. If it breaks below that, then I would start to worry, but it all depends on what you are comfortable with.
I currently do not own anything having to do with CHK, long or short.
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CHK has been a rocket the last couple of months. You have to be careful with natural gas this time of year since prices normally bottom in July, CHK is natural gas. Although the price of nat gas really has little bearing on CHK since much of their gas is hedged (albeit at around $9-$10 instead of the $11-$13 the market has been at lately)
I would try to wait it out until after earnings are released in the next two weeks. The CEO has a habit of releasing good news to jump start the stock when it stalls a bit. I would expect him to make a more detailed announcement concerning the productivity of their Haynesville shale wells so far, which by all accounts to now, should be quite nice.
It has had previous support at $57-$58 and that is also the level that the 25 million shares of the new offering was released at last week. If it breaks below that, then I would start to worry, but it all depends on what you are comfortable with.
I currently do not own anything having to do with CHK, long or short.
I also noticed last week or the week before (whatever day it opened at $74) that someone bought 20,000 July $55 puts. I'm sure it's no coincidence that night Cramer went on for 5-10 minutes saying to get out of CHK after pumping it as hard as he could for the previous 4 months. Those options expire Friday afternoon and may be part of the downward pressure on the stock price in the last week or so.
Whatever you do, put a stop where ever you are comfortable. Don't let anyone else tell you what to do with your money.
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I also noticed last week or the week before (whatever day it opened at $74) that someone bought 20,000 July $55 puts. I'm sure it's no coincidence that night Cramer went on for 5-10 minutes saying to get out of CHK after pumping it as hard as he could for the previous 4 months. Those options expire Friday afternoon and may be part of the downward pressure on the stock price in the last week or so.
Whatever you do, put a stop where ever you are comfortable. Don't let anyone else tell you what to do with your money.
I also noticed last week or the week before (whatever day it opened at $74) that someone bought 20,000 July $55 puts. I'm sure it's no coincidence that night Cramer went on for 5-10 minutes saying to get out of CHK after pumping it as hard as he could for the previous 4 months. Those options expire Friday afternoon and may be part of the downward pressure on the stock price in the last week or so.
Whatever you do, put a stop where ever you are comfortable. Don't let anyone else tell you what to do with your money.
Jax, I saw cramer saying that. He is nothing but a big friggin crook who uses that show to fleece people into losing money with his picks.
How exactly does that july 55 put option work? How much money will be made if the stock does go to 55?
thanks again
cd
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Quote Originally Posted by jaxwhitey:
I also noticed last week or the week before (whatever day it opened at $74) that someone bought 20,000 July $55 puts. I'm sure it's no coincidence that night Cramer went on for 5-10 minutes saying to get out of CHK after pumping it as hard as he could for the previous 4 months. Those options expire Friday afternoon and may be part of the downward pressure on the stock price in the last week or so.
Whatever you do, put a stop where ever you are comfortable. Don't let anyone else tell you what to do with your money.
Jax, I saw cramer saying that. He is nothing but a big friggin crook who uses that show to fleece people into losing money with his picks.
How exactly does that july 55 put option work? How much money will be made if the stock does go to 55?
am going to single handily bring the price of energy down for everybody in the country. Since i bought 2 energy stocks, the energy sector has gone straight down. Am to thank for it guys.
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am going to single handily bring the price of energy down for everybody in the country. Since i bought 2 energy stocks, the energy sector has gone straight down. Am to thank for it guys.
The answer has many aspects. It depends on what they paid, it depends on if the person SOLD those puts naked ( a bullish move) or bought them as protection on a position..so they will sell them or excersize them against shares.
Often times big hedge funds use options as a hedge against positions or as a multiple leg approach to a longer term/shorter term position.
The bottom line is a trade that big was not someone purchasing them for a gain, rather as a hedge or as part of a bigger trade. If someone were to trade that size of position and it be a retail trader, it would TOTALLY spook the market and would be near impossible to fill. There isnt enough on the bid and ask to fill a 20k position on options out of the money like that.
BUT..if you are chomping as to know how much if a person DID trade that large, all you need to do is see what they paid, then calculate where they are trading and figure it out.
The July 55 puts are bid/ask 1.30 to 1.50 so if you had 20k contracts that would run 230-250k in value..but today there was only 6k contracts traded..so to me that trade of 20k was a hedge to protect a position or a counter trade on another position, especially a round number like that.
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cd,
It depends..
The answer has many aspects. It depends on what they paid, it depends on if the person SOLD those puts naked ( a bullish move) or bought them as protection on a position..so they will sell them or excersize them against shares.
Often times big hedge funds use options as a hedge against positions or as a multiple leg approach to a longer term/shorter term position.
The bottom line is a trade that big was not someone purchasing them for a gain, rather as a hedge or as part of a bigger trade. If someone were to trade that size of position and it be a retail trader, it would TOTALLY spook the market and would be near impossible to fill. There isnt enough on the bid and ask to fill a 20k position on options out of the money like that.
BUT..if you are chomping as to know how much if a person DID trade that large, all you need to do is see what they paid, then calculate where they are trading and figure it out.
The July 55 puts are bid/ask 1.30 to 1.50 so if you had 20k contracts that would run 230-250k in value..but today there was only 6k contracts traded..so to me that trade of 20k was a hedge to protect a position or a counter trade on another position, especially a round number like that.
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