We are recommending the following credit spreads to the MAY expiration cycle.

We are recommending credit spreads for our Portfolio #1 in the following issues.

CHK - Chesapeake Energy Corporation engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company also offers marketing, midstream, drilling, and other oilfield services. It holds interests in various natural gas resources, including the Haynesville and Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin of West Virginia and Pennsylvania; and the Barnett Shale in the Fort Worth Basin of north-central Texas. The company also holds interests in various liquids-rich resource plays located in South Texas, Ohio, Pennsylvania, northwestern Oklahoma, Texas Panhandle, southern Kansas, and Wyoming. As of December 31, 2012, it had interests in approximately 45,400 gross productive wells. The companyÂ’s proved reserves comprise approximately 15.690 trillion cubic feet of natural gas equivalents. Chesapeake Energy Corporation was founded in 1989 and is headquartered in Oklahoma City, Oklahoma.

ABX - Barrick Gold Corporation engages in the production and sale of gold and copper. It is also involved in exploration and mine development activities. The company holds interests in the producing gold mines, which are concentrated in North America, South America, and Australia Pacific; producing copper mines located in Chile and Zambia; and a mine under construction is located in Saudi Arabia. In addition, it holds interests in oil and gas properties located in Canada. As of December 31, 2012, the company had proven and probable mineral reserves of 140.2 million ounces of gold, 1.05 billion ounces of silver contained within gold reserves, and 13.9 billion pounds of copper. Barrick Gold Corporation was founded in 1983 and is headquartered in Toronto, Canada.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.


We are looking to close out the POT 40/41 call spread for a NET DEBIT of $0.80.

The BID/ASK is $0.77 - $0.82.

As usual look to split the BID/ASK.

Nevertheless, we will be closing this spread tomorrow, unless other wise noted by an email late tonight or Friday morning BEFORE the opening.

MCM June 2013 recommendations will start the weekend of May 11-12.