Chesapeake Energy on a Roll

Chesapeake Energy (NYSE: CHK) put options were active in early trading today with the Nov. and Dec. contracts changing hands. The Nov. 24 puts traded for 0.25 and the Dec. 24 puts traded for 1.05 in what appears to be a large investor rolling protection on 550,000 shares of stock. With equity option expiration fast approaching the investor is taking advantage of premium still left in the Nov. contract to reduce his cost from $1.05 to 0.80. CHK currently trades 24.31.

Chesapeake Energy has pulled back from recent highs as Natural Gas continues to prove weak and oversupplied. A quick glance at a CHK chart will show that 24 is a support level that, if broken, will send the stock down to at least 21.50.