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November 8, 2013  Fri 2:47 AM CT

EOG: SEE CHART GET CHAIN FIND STRATEGIES
EOG Resources fell on third-quarter results yesterday, but a large trader sees a floor in shares of the oil and gas company.

optionMONSTER systems detected the sale of 7,238 April 165 puts for $10.30 yesterday, below the listed bid price at the time. This is clearly a new position, as open interest in the strike was just 78 contracts before the trade appeared.

The put seller is betting that EOG will hold above $165 through mid-April. But if it falls below the $165 strike price, the trader will face the obligation to buy shares at that level. (See our Education section)

EOG dropped 2.86 percent to $171.58 yesterday after dipping to $165.05 in the morning. The stock hit an all-time high of $188.30 two weeks ago.
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It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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