We will be seeing a stabilization in the energy sector following the most recent wave of volatility in oil prices. One of the best ways to play that is to use the current depressed prices of select shares to base option plays.
In the move recommended today, a pummeled Chesapeake Energy Corp. (NYSE:CHK) serves as the basis for some nice forward returns. At one point, Chesapeake was the leading independent natural gas producer in the U.S. Subsequently, it prioritized crude oil production. The company's attempt to maintain a position in both brought about a significant decline as oil and gas prices moved south.