Chesapeake Energy (CHK, $23.32, unchanged) managed to escape the market’s bad day and finished the session even. I had mentioned a short-term trade Monday morning when the stock was at $22.32 and the target for one of the option plays was almost triggered. The November 25 calls (CHKKE, $2.20, unchanged) were trading for $2.10 at the time of the blog and I said the stock had a chance of getting to the $24-$27 range quickly. Today the stock hit a high of $24.61 and the calls hit a high of $2.90. I had predicted $3.00 and some of you may have left the trade open in hopes of getting that target. If you held onto the call options then I can see why but remember when we get that close to a target, it’s okay to cash out. So the gain wasn’t 50%, it was 45%. There is a difference between 45% and 50% but the point I’m trying to make is that when you get that close to a target price, don’t get greedy, especially in this market. I think the November calls still have a shot at $3 again and I would continue to hold them and the January 25 calls (CHKAE, $3.90, unchanged) which were profiled at $3.70. They hit a high of $4.40 today. Target $6 or better for the January options with a stop of $3.00. Rick Rouse]]>