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• Babcox & Wilcox faces sideways trade
• Range-bound strategy targets Lincare

• CHK 100% Rate It

Chesapeake Energy has moved more than one investor had anticipated, but the trader remains neutral on the shares.

optionMONSTER's tracking programs detected the sale of 10,000 July 14 calls for $3.43 and 10,000 July 11 puts for $0.11. An equal number of June 13 calls were bought at the same time for $4.10, but volume was below open interest in the strike.

It appears that the investor had previously sold the June calls. But then CHK climbed more than expected, forcing the trader to adjust the position.

Today's trade allows an additional month for shares of the troubled natural-gas company to fall and is looking for a close back below $14. It cost a net $0.56 to establish.

CHK is up 1.95 percent to $17.26 in afternoon trading. The stock lost almost half its value between the start of the year and mid-May as investors worried about its debt, accounting, and management, but shares have been rebounding since then.

Today's option trade is known as a short strangle . It's an example of a so-called market-neutral strategy that makes money from the passage of time rather than a directional move.

The trades accounted for about half the volume in CHK so far in today's session.

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