CHK
Chesapeake Energy (CHK) Found a Tradable BottomIncredibly important structural level at 3.70. I intend on riding the first layer into first target shown above and trailing the other 50%.
CHK bullish pullback?I'M EXPECTING A LITTLE MORE OF A PULLBACK HERE AND THEN CONTINUING HIGHER...HOPEFULLY FOR MY PLAN! IF IT RUNS BEARISH TO 5 OR BELOW I MAY BE LOOKING TO PICK UP SOME MORE SHARES.
CHK Long Entry $CHK Purchase: ChannelBreakout LE Signal. StochRSI indicates currently oversold, but trending back up to 20. MACD converging, fast line soon to cross over slow. Positive uptrend in CCI. Conservative PT of $8.00.
CHK- Potential short or New HighsChesapeake Energy is coming up on the 6.9-7 area that has proven an area of support and resistance in the past. We recently put in lower highs around 7.50 after retesting the high of 8.00. If we break down though. 6.9, I believe we can see more downside toward 6-6.25.
This stock also has the potential to move back up toward 8 if the 7.00 area holds in the coming days. Just remember that CHK is an energy name!
OPENING: CHK COVERED CALLContinuing to work this high IV underlying here ... .
Metrics:
Bought 100 Shares at 7.76
Sold Oct 21st 8 call
Whole Package: 7.14 debit
Max Profit: $86 per 100 shares/contract
ROC: 12.0%
Trade setup on CHKThis is a trade I set up that triggered on 12/19/16. Looking for a bullish run to "Target (1R) and see what it does from there!
CHK Bullish SwingLots of selling today, still looking at an entry based on the gap from 11/30. Entry 1 penny above the high of that day and stop placed at the low of that day.
CHK Bullish SwingAnother Go at CHK. Had a great trade last time, looking for a new entry on this retest gap. If it pulls back this far, the bounce should be quick.
OIL surprise good for CHKOPEC oil cut agreement bodes well for companies like $CHK. Can target 14 in the fullness of time
WEEK OF 11/20: HIGH IV IN PETRO UNDERLYINGS; NOT MUCH ELSEWHEREAfter having gone through my usual routine of screening for high implied volatility rank/high implied volatility underlyings for plays this coming week, one thing stands out: the implied volatility is in petro, with stocks like CHK, SDRL, WFT, PBR and the like rounding out my top 10 IV list.* With OPEC talks approaching here, and "friskiness" in petro-based underlyings likely to ensue, I'm loathe to pile into more petro, particularly if it involves a bullish assumption. The "more likely than not" outcome is no meaningful OPEC agreement as to cuts, which means oil down, which means further long opportunities below somewhere. If the contrarian outcome comes to pass (i.e., "meaningful cuts"), well, then I've just plain ass missed an opportunity to add long positions here and will have to make do with the bullish assumption positions I've got on here.
That being said, the "Top 10" list isn't entirely bereft of possibilities, depending on your risk tolerance and aversion to roller coasters.
For example, GPRO may be worth a bullish assumption play here on the notion that Christmas sales of its drones will be "brisk," something we probably won't know unless GPRO discloses its unit sales before its Q4 earnings announcement next year. The nearest to the 20-delta strike short put, 45 DTE, however, is the Dec 30th 8.5, which would bring in .36 ($36)/contract at the mid -- not exactly something that gets me excited. Even assuming I wanted to go nondirectional (short strangle/straddle, iron condor/fly), I can't squeeze enough out of those setups premium wise to make it worthwhile.
VRX is, well, VRX. The Dec 30th 14.5 short put (currently the 19 delta) goes for .66 ($66) at the mid price. That isn't bad, but I have to put up with sitting on pins and needles for 5 weeks or more with that setup. The alternative would be to go with a defined risk setup (not keen on being caught undefined in a potential whipsaw). Even there, however, an iron condor won't pay out at least 1.00 in credit without forcing the wings in beyond the 1 SD (I prefer more room with volatile biotech), and I'm not sure that I would want to go with the narrower breakevens of a fly, in spite of the fact that the credit I'd receive at the door would be more than sufficient. (A Dec 30th 13/18/18/23 iron fly would bring in 2.78, for example).
Well, what about AMD? That's in the list ... . Like its semicon counterpart, NVDA, AMD's been on a rip and the place to have gotten in was lower for a bullish assumption play (scratches "short put" off his list). And nondirectional doesn't pay enough: the Dec 30th 8.5 short straddle would bring in a 1.44 credit at the mid (I like to get at least 2.00 out of those); the 7/10.5 short strangle, .40 at the mid. Defined risk (flies, condors) will bring in even less.
CLF? Same deal (can't get much out of the 45 DTE 20 delta short put; short straddle/strangle, iron condor/fly bring in too little premium).
Ugh.
Sometimes, these holiday weeks are best for hand sitting ... . Looks like this is going to be "par for the course."
* -- The top 10 implied volatility stocks (in descending order): CHK, WFT, VRX, CLF, AMD, GPRO, PBR, RIG, VALE, CX, UNG.
CHK Bullish Swing TradeResting Period on the Hourly chart after big move up. If CHK breaks bullish I'll be looking to enter a long position with a stop limit buy at $6.15 and a stop triggering upon fill at $5.95
CHK longCHK has been following a 'megaphone' pattern, should make a push to 7 if oil stops going down
Can't break the ascending triangleIf it doesn't break out the triangle soon, this thing is going down