Two big block orders in CHK
Chesapeake Energy saw two large block orders.? 1st a customer sold the Sep regular 7 straddle at 1.38.? This straddle went up 11500 times.? This trade would imply that the underlying is likely to sit and or meander back toward the 7 strike.? It should be considered aggressively bearish volatility and slightly bearish the underlying
In a separate trade, tied up to stock a trade did a bull ratio risk reversal.? The trader sold 25,000 of the October 6 puts at .37 and against it bought 10,000 of the Oct 9 calls for .42 this was done tied up against 1,000,000 shares of the underlying.? While there is large open interest on both strikes, I am not sure if this is close or partial close.? The Oct 9 calls were traded in a large block of 20,000.?
The risk reversal is likely a stock replacement play for a credit.? Both of these trades point toward near term bearish volatility, but the second trade has a longer term bullish bias.