Replies to post #4907 on Chesapeake Energy Corp (CHK)

[dwms07]

Everything is based on OPEC cutting production. These guys can be more bullheaded than a real bull! But I don't see them bucking an untested Trump. OPEC should know that he can't back down so early in his administration even if he secretly wanted to. If OPEC don't cut and raise oil to $60 by the time he takes office, he will be likely hit them with a tariff!

OPEC also knows that the US likely has more oil than the entire world put together, so pissing off the US President could crush them!

An American Oil Find That Holds More Than All of OPEC

To tell the truth, with everything going on right now, I'm lost on what oil or gas will do in the next 60 days! I think prices will move up for both oil and gas that's why I'm loading up on CHK! But I still stick to my old call of $7.50 by 15 January.

It is very interesting times right now!

[Crusen]

I'll answer your question. I think your position is shaky. Your 9s especially. You are very exposed to the price of oil.

At this point I believe it will gradually head lower. This is because nobody cares what OPEC says until they give a guarantee of a cut. Talk is cheap and they disappointed too many times recently. Meanwhile, there is a physical glut of oil which is only getting worse.

So, who knows? Markets appear to be consolidating for a push higher, which may raise the perception of demand. OPEC's big meeting is at the end of the month, but that's a huge tossup like 50/50 at this point.

Currently at 12 cents don't be surprised if you have problems selling your calls but there is plenty of time until January. Unless something concrete on the direction of oil changes I would not pass up any opportunity to sell for a profit if I were you. Oil is trading like a wet noodle.