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July 30, 2013  Tue 4:14 AM CT

Cabot Oil & Gas spiked higher after a strong quarterly report last week, and traders apparently believe that the stock will hang onto those gains.

About 3,000 October 72.50 puts were sold yesterday for $2.21 to $2.45 yesterday, according to optionMONSTER's tracking systems. These are clearly new positions, as open interest in the strike was just 111 contracts before the session began.

The put sellers are looking for COG to stay above $72.50 through expiration in mid-October. If the stock is above that strike price, the traders will be on the hook to buy shares at that level.

COG fell 0.79 percent yesterday to close at $76.55. The energy company gapped up from the $72 level to an all-time high of $78.07 last Thursday after beating estimates on the top and bottom in its second-quarter report. (See our Education section)

Total option in the name was 4,255 contracts yesterday, compared with a daily average of 3,000 for the last month.
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