Volume Spike Investor

Chesapeake Energy Corp. (NYSE: CHK) is seeing a surge in its stock of 8% today and we have already seen two-thirds of an average day’s trading volume in about 40 minutes of trading.  But one thing is even more interesting here, and that is the CALL OPTION buying we are witnessing right out of the chute this morning.  As of 10:10 AM EST, we have seen the following contracts trade in CALL OPTIONS for Chesapeake along with the corresponding open interest:

OPTION CALL MONTH  Volume   OpInt
JUL08 $70.00 CALLS    15,785    43,338
JUL08 $75.00 CALLS    16,523    11,698
AUG08 $67.50 CALLS    6,458    10,443
AUG08 $75.00 CALLS    8,061    2,045
OCT08 $80.00 CALLS    1,573    6,986
JAN09 $70.00 CALLS    4,942    9,234
JAN09 $75.00 CALLS    1,370    7,346

This is after it announced a joint venture in the Haynesville Shale area, and many of you will know the insider buying all teh way up and the constant backing this gets on CNBC’s FAST MONEY and CNBC’s MAD MONEY after teh close each day.

Jon C. Ogg
July 2, 2008