2/16/2023 0 Comments Chk earnings whisper![]() The March 25 puts, on the other hand, last traded with an ask of $1.24 and a bid of $1.22. Peak put volume on the day, meanwhile, is centered at the March 25 strike, with 833 contracts crossing on open interest of 1,864 contracts.įor reference, the March 25 calls last traded for an ask of $0.90 and a bid of $0.87, the July 27 calls sported an ask of $1.38 and a bid of $1.36. Following at a close second is the out-of-the-money, back-month July 27 strike, where 1,043 calls have traded on open interest of 2,655 contracts. The most active strike on the day is the out-of-the-money March 25 call, where more than 1,400 contracts have traded on open interest of 156,658 contracts. In other words, calls are nearly twice as popular on CHK ahead of the company's turn in the earnings confessional. The result is a single-session put/call volume ratio of 0.56. Specifically, roughly 9,000 calls have traded on CHK so far this morning, compared to put volume of about 5,000 contracts. This combination of bullish ratings and low average price target creates the possibility of potential downgrades if the analyst community is unimpressed with Chesapeake's earnings or outlook.Ĭhecking in with CHK's options activity, we find a wealth of potentially bullish call volume levied against the shares heading into tonight's quarterly report. Additionally, the stock is trading a mere 17% below the consensus 12-month price-target of $29. Specifically, only four of the 35 analysts following CHK rate the shares a Sell, compared to 17 Holds and 16 outright Buy ratings. The brokerage community seems to be aware of Chesapeake's issues, but most analysts ratings remain on the bullish end of the spectrum. With bargain-basement natural gas prices potentially eroding Chesapeake's bottom, guidance becomes a central issue for the company going forward. The company's fund raising brings up a major sticking point for Chesapeake investors, namely the fact that the company's debt load is more than double that of leading natural gas supplier Exxon Mobil ( XOM). ![]() Furthermore, on February 13, the company announced asset sales of $10 billion to $12 billion, or about 30% of the firm's total asset value.
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