Chesapeake (CHK) is under pressure on increasing volume of 47 million shares on a Reuters report suggesting that an SEC office in Texas is asking the company for documents as part of an investigation (LINK TO STORY). Shares of the Oklahoma City, OK natural gas producer are down $1.08 to $17.20. In the options action, 63,000 calls and 141,000 puts traded in the name. The flow includes a 14,000-lot of July 18 puts that are now int-the-money after today’s slide. It traded for 83 cents per contract and might be a liquidating trade ahead of the expiration. 24,000 have now changed hands. July 17, Aug 17, Aug 19 and Oct 15 puts are also actively traded. 30-day ATM implied volatility in CHK is moving up 16.5 percent to 65 amid the increased regulatory uncertainty.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.