What we are seeing now is typical selling before option expiry. The sellers of the option have decided that they will not exercise & sell them at a large discount (>1.0c) to the ordinary shares.
If you are a shareholder, why not sell your shares at 1.7c & replace them for 1.5c by buying options at 0.5c and exercising them for 1.0c. For every million shares you make $ 2k.
As long as this arbitrage is available, it will be very difficult for the share price to rally very far.
CHK Price at posting:
1.7¢ Sentiment: Buy Disclosure: Held
