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June 28, 2013  Fri 2:45 AM CT

CHK: SEE CHART GET CHAIN FIND STRATEGIES
A large volatility trade is looking for a sharp move up or down in Chesapeake Energy.

optionMONSTER systems show that a trader bought 17,500 September 20 puts, led by a single print of 14,335 that went for $1.19. This is a new position, as the strike's open interest was a mere 29 contracts before the trade appeared.

Less than a minute later, a block of 615,000 CHK shares was bought for $20.90. Combined with the puts, this creates a delta-neutral play that is looking for higher volatility and/or a big move in either direction. (See our Education section)

CHK finished the day at $20.58, up 1 percent. The natural-gas and oil company was just shy of $23 a month ago and down near support at $18 in mid-April.

More than 36,000 CHK options changed hands yesterday, twice its daily average.
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It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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