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Chesapeake Energy, Corp. Update

If you were able to intiate the CHK Novemeber 12.5 puts prior to the close, then you should complete the allocation if you haven't already. We were trying to sell half of the normal allocation of the CHK WV's for $1.00 on Friday. The other half was to be completed once the stock broke above the 8 day Exponential Moving Average or 20.58. Since the stock gapped up this morning, my suggestion is to complete the second half of the allocation at $0.60 - 0.65 per contract. The minimum allocation for this trade is 3 contracts (1 from Friday and 2 more at today's lower price). The total initital margin for the minimum trade is about $350. The nominal value of the 300 shares of CHK is $3,750. If you missed this from the beginning, sell 2 contracts of the November $15 strike for $1.00 - $1.05. The initial margin on the 15 strike trade is about $305 for two contracts.

The Mosaic Company (MOS)

Similarly, I provided an entry scenario into MOS for half of the total position until the stock could break above its 8 day EMA. The normal allocation of this trade would be 4 contracts of the November 25s. If you are stepping into the position, the minimum is two contracts. You should add the additional contract(s) once the stock breaks and closes above the 8 day EMA of 37.55. The total initial margin should be about $510 for two contracts. The stock is currently at $36.50 and the Nov 25 put is at $0.95 - 1.00. If the price of the option dips too low then sell the Nov 30 put (MOS WF).

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