At 4am the week turned positive in the Futures.
A bit later, it was announced that Chevron (CVX) was buying Anadarko (APC) for $33Bn AND CVX will spend another $5Bn buying back 2% of their own stock. That's pumping up the energy sector into earnings season as APC is getting a 44% premium to yesterday's close, which is an indicator that the energy sector stocks may be underpriced by quite a bit or it's simply a play to capture Natural Gas assets (/NG), which we are long on.
In our Long-Term Portfolio, we have an aggressive position on Chesapeake (CHK), which we thought was very undervalued at $2.50 and our net $0 position is already up $3,425 but still has plenty of room to grow as it pays $15,000 at $5 so a potential triple from here if all goes well:
|CHK Short Put||2020 17-JAN 4.00 PUT [CHK @ $3.33 $-0.07]||-50||1/8/2018||(280)||$-6,000||$1.20||$-0.18||$-0.95|