CHESAPEAKE ENERGY CORP

2.58 +0.01 (+0.39%) Sell

CHK investors looking to add more to current positions

13 min read

CHESAPEAKE ENERGY CORP delivered good returns today. It grew by +0.39% to close at 2.58. During the last week it returned -5.15% and saw a maximum drawdown of -5.51% before bouncing back.

[Themes containing CHK]

CHK is currently in a down trend. Over the last three months 3 bearish signals have generated a profit of +15.48% for investors.

Trend

CHK has been underperforming the SP500 index in recent time, after having outperformed till 12 Sep, 2016. Over the last 2 years 11 months and 9 days, CHK underperformed the SP500 index on 53% days.

During the last three months CHK was mostly loss making and delivered on average -0.61% per day. It's best return during this period (of +8.6%) was on Monday, 5 Nov, 2018. While it's worst loss in the same period (of -12.11%) was on Wednesday, 24 Oct, 2018. There was initially a bullish trend during this period which started on 17 Sep, 2018 and went on till 24 Sep, 2018. The bullish trend returned +16.31% to investors. This was followed by a bearish trend that started on 22 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -17.07% of investor capital.

On monthly basis, CHK delivered losses in more months over the last year, than profits. CHK delivered profits less regularly than SP500 index. CHK significantly outperformed SP500 index in May 2018, when it returned +50.51% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CHK had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

Persist - don't take no for an answer. If you're happy to sit at your desk and not take any risk, you'll be sitting at your desk for the next 20 years.
-- David Rubenstein

CHK is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in CHK's volatility from 17 Sep, 2018 to 24 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that CHK has significant negative skewness in it's return distribution. This indicates that CHK is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in CHK derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than CHK. Therefore, SP500 must receive a lower allocation than CHK in your portfolio. SP500 index usually has shorter drawdown period than CHK.

Based on your interest in CHK you may find it interesting to know that TWTR and AMD are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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