52-Week High Alert: Trading today’s movement in CHESAPEAKE ENERGY CORPORATION COMMON STOCK $CHK

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Quantchabot has detected a promising Bull Put Spread trade opportunity for CHESAPEAKE ENERGY CORPORATION COMMON STOCK (CHK) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CHK was recently trading at $64.70 and has an implied volatility of 41.47% for this period. Based on an analysis of the options available for CHK expiring on 15-Oct-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $64.70-$72.93 at expiration. In this scenario, the average linear return for the trade would be 40.61%.

52 week high: CHESAPEAKE ENERGY CORPORATION COMMON STOCK recently reached a new 52-week high at $65.36. CHK had traded in the range $40.00-$62.67 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if CHK maintains its current direction and does not revert back to pricing on the bearish side of $64.70 on 15-Oct-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if CHESAPEAKE ENERGY CORPORATION COMMON STOCK closes at or above $63.55 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 55.98% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.