• Chart of the Day: Chesapeake Energy (CHK)

    by  • January 9, 2013 11:05 am • Quick Hits, Tony Venosa's Chart of the Day • 1 Comment

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    Today’s chart is of Chesapeake Energy (CHK) which engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States.

    Ticker:  Chesapeake Energy (CHK)

    What I Am Looking At:

    • Energy sector slightly underperforming S&P 500 year-to-date
    • CHK also underperforming year-to-date (+1 percent) and year-over-year, down nearly 25 percent
    • Monthly trend remains down
    • Shares have been consolidating in a rectangle formation since early November, trading between $16 and $18
    • A number of overhead moving averages just above $18 could provide resistance
    • Past few days have seen call adds at the 17.5-strike price which could pressure shares lower
    • Call buying has been dominant during the past 10 days as the 10-day call/put ratio is 3.44
    • Peak put open interest for the January series resides at the 15-strike, a move below support could be attracted to this level
    • Short interest is near multi-year highs as 16 percent of the float is sold short
    • Nearly 8 days for shorts to cover themselves
    • 17 out of 26 analysts who cover CHK rate the shares a “hold”
    • Ex-dividend date is 1/11/13


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    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


    One Response to Chart of the Day: Chesapeake Energy (CHK)

    1. akabeachguy
      January 10, 2013 11:30 am at 11:30 am

      Good call! CHK down 3.25% today (1/10/2013) This is one stock I occasionally trade. Will look for hold of $16.25 support (weekly back to 06/2012) to go long. Now trading at $16.52.

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