Rumors were flying this morning of a possible buyout of Burlington Resources (BR) by Conoco Phillips (COP). This is great news for our natural gas play, Chesapeake Energy (CHK).

If you want to roll the dice a little, and collect some cash between now and Friday's option expiration, you can sell the Burlington Resourses December 80 put (BRXP) at .65 cents or $65 per 100 shares.

Continue to hold Chesapeake (CHK) and Marathon (MRO). The major integrated oil companies will continue shopping for assets to keep them out of the hands of the Chinese. China cannot continue its massive growth without energy assets.

The merger activity that we have been witnessing is as much about national security as it is about an energy company's growth. The same can be said for our involvement in the Middle East.