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Options Trading News

November 7, 2011  Mon 8:18 AM CT

CHK: SEE CHART GET CHAIN FIND STRATEGIES
The most difficult thing I have to deal with at the moment is the desire to buy all of the drillers because of the incredible prospects being found all over the world. They are everywhere, especially here, where we know that in five years we are going to be a gigantic exporter of natural gas.

Yet all that happens is that we hear about the funding gaps from oil and gas companies, and the fact that the service companies aren't making enough, especially if oil crashes.

TheStreet.com logoTo which I say, you have to be kidding me. If it hasn't crashed yet, why would it crash now? The stuff is going in the OPPOSITE direction. There is no amount of money that companies won't pay to get it out of the ground, and it is worth so much more than the drilling costs.

Doesn't matter. The group trades as if all that matters is the next tick.

But anyone who listened to Chesapeake or EOG Resources or Apache or Occidental or Continental Resources knows one thing: The money for drilling is there and it is growing quickly.

For these stocks, particularly for Schlumberger, Halliburton, Core Laboratories, and Ensco, it is well worth the pain.

Disclosures: Cramer's charitable trust is long APA, ESV, and SLB.

(optionMONSTER and TheStreet.com exchange a select number of posts each day as part of a limited content-sharing agreement.)


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