Jim Chanos Just Shared His Sports Arena Indicator

Legendary short-seller Jim Chanos was on CNBC's Fast Money with Scott Wapner this afternoon, and he and his staff use a funny indicator when they're looking for shorts.

It's the Sport Arena indicator.

This came up while Chanos, Wapner and co. were talking about Chanos' biggest long position — natural gas.

Chanos says he "has no idea where the commodity is going," and that his long position in is actually a hedge against company specific positions.

That's when Wapner asked Chanos about Chesapeake Energy and its infamous fall from grace.

Chanos' response was classic.

"Chesapeake Energy," he said chuckling. "Well I'm not going to talk about Chesapeake but I will tell you that we often look at companies that put their names on arenas and sports teams."

Chesapeake has a stadium in downtown Oklahoma City.