Anybody trading options on energy

[robeoh]

I have Jan. leaps on CHK and OXY and I'm wondering if I've ridden them too low for them to return back into the money before they expire. I'm interested in what other options traders who follow Cramer are thinking these [trying] days. Maybe I should have put stop limits on them and then rebought at these lower levels? I'm also interested in the relative success of options when using Cramer's underlying stock pics.

Thanks in advance.

[jacobnbr1]

i was considering (btu) 80 calls out in march. they are around 6.00each. the stock is beaten down and looks to be recovering fast. 80 is probably pretty safe being the stock was up higher. any ?

[robeoh]

I'm trying to get a handle on how far out to purchase options in this market. Especially with energy since it has gotten battered down lately. I followed Cramer's advice and doubled down on OXY Jan 85 to reduce my basis. At 77+, it's got a long way to go to get back in the money. Maybe I should be purchasing farther out? What is the sentiment out there for energy sector recovery, if/when it does?

As for BTU, I cannot specifically comment, but will look into it. Cramer does not have it on his ActionAlert list, however.