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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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