The Weekly Options Newsletter 05/05/2016

THE MARKET TREND IS SIDEWAYS | VOLATILITY IS down

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The market is currently in a sideways mode so buying both puts and calls is a good idea right now. Volatility is relatively high so "at the money" options will be overpriced – try to focus more on "out of the money" options for the moment.

THE OPTION PICK FOR TODAY IS CHK

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CHK has been gaining a lot of exposure and this has resulted in it moving down despite the market being sideways recently. The best option pick right now is to buy a $5.00 Put on CHK with an expiry date of 05/13/2016.

Chesapeake Energy Corporation (Chesapeake) is a producer of natural gas, oil and natural gas liquids (NGL) in the United States.