Chesapeake's most recent trend suggests a bearish bias. One trading opportunity on Chesapeake is a Bear Call Spread using a strike $26.00 short call and a strike $31.00 long call offers a potential 6.16% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $26.00 by expiration. The full premium credit of $0.29 would be kept by the premium seller. The risk of $4.71 would be incurred if the stock rose above the $31.00 long call strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for Chesapeake is bearish and the probability of a decline in share price is higher if the stock starts trending.
The 20-day moving average is moving down which suggests that the medium-term momentum for Chesapeake is bearish.
The RSI indicator is below 20 which suggests that the stock is in oversold territory.
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
Chesapeake Granite Wash Trust Still Overvalued
Wed, 08 Jan 2014 16:21:00 GMT
Seeking Alpha – Summary The Trust has numerous issues that greatly increase the risk that isn't properly compensated for at current prices. The Trust is currently at least 24% overvalued, and possibly more if investors …
Are Companies Giving Up on This Shale Gas Play?
Wed, 08 Jan 2014 16:02:23 GMT
Motley Fool – How depressed gas prices have resulted in a sharp drop-off in drilling activity in North Texas’ Barnett shale play.
Why a dip in natural gas liquids prices affects energy names
Wed, 08 Jan 2014 13:00:13 GMT
Market Realist – NGLs prices remain uptrend despite the falling last week, which is positive to producers.
Why Chesapeake Energy Corporation Might Pull Back in 2014
Tue, 07 Jan 2014 19:16:13 GMT
Motley Fool – Does this analyst make a good case or is it just more noise from Wall Street?
3 Ways To Play The Shale Oil Boom
Tue, 07 Jan 2014 18:24:55 GMT
Seeking Alpha – Whether or not you believe that fracking for oil is a long-term solution that's here to stay there's no doubt that it's yielding results right now. The United States is inching ever closer to establishing …
Also on Market Tamer…
Follow Us on Facebook