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September 23, 2016  Fri 12:06 PM CT

EOG : SEE CHART GET CHAIN FIND STRATEGIES

Traders are looking for gains in EOG Resources by early next year.

optionMONSTER's monitoring system detected the purchase of more than 2,500 January 105 calls mostly for $1.51 today. This represents fresh buying, as volume was well above open interest of 1,007 contracts.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

EOG is down 2.95 percent to $89.88 in afternoon trading but is up 10 percent in the last three months. The oil and natural-gas producer is expected to release quarterly results after the close on Nov. 3.

Overall option volume is about average in EOG so far today, but calls outnumber puts by a bullish 3-to-1 ratio.

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