I sold 1 CHK July 21 ’12 $16 Put for $1.13. If these 100 shares get assigned I’ll own 100 shares of CHK for $14.87 / share before commissions. This would give me an effective yield on cost of 2.35%. Otherwise I’ll collect $113 for waiting.
This is more of a value/speculation play than a DG investment. I will likely put these shares in another portfolio if assigned.
Chesapeake Energy Corporation (Chesapeake) is a natural gas and oil exploration and production company. Chesapeake is engaged in the exploration, development and acquisition of properties for the production of natural gas and oil from underground reservoirs. It also provides substantial marketing, midstream, drilling and other oilfield services. Its operations are located onshore and in the continental United States. As of December 31, 2011, the Company owned interests in approximately 45,700 producing natural gas and oil wells that produced approximately 3.5 billion cubic feet of natural gas equivalent per day, net to its interest. The Company operates in three segments: exploration and production; marketing, gathering and compression, and oilfield services. In June 2011, the Company acquired Bronco Drilling Company, Inc. In December 2011, CMD sold its wholly owned subsidiary, Appalachia Midstream Services, L.L.C. (AMS).
Here’s an updated list of my active options:
03/12/12 Sold 1 AZN Oct 20 ’12 $45 Put @ 3.00
03/28/12 Sold 3 BBVA July ’21 ’12 $7 Puts @ .55
04/09/12 Sold 1 VOD July 21 ’12 $27 Put @ 1.45
Leave a Reply