Last week, I wrote about a strangle position that might have been initiated on Chesapeake Energy (CHK: sentiment, chart, options) ahead of its earnings report. In a long strangle position, a trader is looking for a sharp move in the underlying stock, but is not particularly concerned about which direction the equity moves in.

Following the company's earnings report that was released last night, it doesn't appear that traders are getting the sharp move they may have been expecting. Last night, Chesapeake Energy (CHK) posted a first-quarter loss of $143 million, or 29 cents per share, compared to its year-ago profit of $232 million, or 50 cents per share. Excluding items, adjusted earnings came in at $561 million, or $1.09 per share, on revenue of $1.61 billion. Analysts had predicted a profit of 92 cents per share.

Since the trade was initiated on April 23, the shares of CHK have lost 3.2%. In trading today, the security is up roughly 1% and appears to be bouncing between support and resistance at its 10-day and 20-day moving averages.