Stock/Options Alert: Chesapeake Chatter (CHK, BP)

Posted in General, Options 
January 26th, 2009

Chesapeake Energy (NYSE: CHK) is seeing some active volume in the stock options trading late in the day on market chatter that that BP plc (NYSE: BP) wants to acquire the company.  Here are the trades we saw in call option for FEB-2009 expiration with options contract volume and the prior day’s open interest:

STRIKE    Volume    Op.Int.
$17.50    15,064    12,936
$20.00    16,209    8,807
$22.50    4,003    2,661

Chesapeake shares are up over 7% at $16.01 late in the day.  We would also caution the rumor monger traders on the point that with 40 minutes to go it has traded about 18 million shares of common stock.  Its 3-month average volume in any given days is about 26 million shares.   You can read the FULL OP-ED PIECE at 247WallSt.com.

Jon C. Ogg
January 26, 2009

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