Shares of Chesapeake Energy slumped 2.8% in afternoon trade Wednesday, putting them on track for a third-straight loss, as investors position for the oil and natural gas exploration company's second-quarter results due out later this week. The company, which is scheduled to report results before Thursday's open, is expected to swing to an adjusted profit for the fourth straight quarter, with analysts surveyed by FactSet estimating earnings per share of 14 cents, on average. Revenue is expected to decline for the ninth time in the past 10 quarters to $1.06 billion, according to FactSet. Options traders are ready for a relatively large stock reaction to results. A volatility play known as a straddle is pricing in a 7.1% one-day post-earnings move in Chesapeake's stock in either direction, compared with the average one-day move of 6.0% after the past 20 quarterly reports. The stock has plunged 34% year to date, while the SPDR Energy Select Sector ETF has shed 12% and the S&P 500 has gained 10%.
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