Expected price path of CHK

Discussion in 'Stocks' started by ajensen, Jun 10, 2020.

  1. ajensen


    I think Chesapeake Energy stock is going to zero, given that it is likely to file for bankruptcy, and that its bonds are trading at about 10% of face value according to https://www.nytimes.com/2020/06/09/.../chesapeake-energy-bankruptcy-protection.html , so I would like to buy put options. Any guesses on how quickly the stock could go to zero? I am wondering what tenor of puts to buy. Of course, my puts may end up worthless, and I will size the trade assuming they might.
  2. zdreg


    Everybody knows what you know. The length of time is unknown. Put premiums will reflect current sentiment as to bankruptcy and length of time to bankruptcy.
    Last edited: Jun 10, 2020
    Nobert and Clubber Lang like this.
  3. Nobert


    Howard Marks,
    would buy bonds/preferred shares of such garbage, if the remaining assets would be enough to cover those (maybe with additional, small profits once sold out), and would sit tight. If nothing bad happens = win/win.

    20+ years without loosing (?)
  4. LanceJ


    Didn't the price just rally from $7 to $77?
    zdreg likes this.
  5. zdreg


    Your post is in the running for understatement of the year award.:D