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December 20, 2016  Tue 8:07 AM CT

Traders are rolling bearish bets in Cabot Oil & Gas after the company hit resistance at an old support level.

OptionMonster's monitoring systems detected the purchase of 12,000 April 22 puts for $2.10 and the sale of an equal number of January 24 puts for $2.36. Volume was below open interest in the 24s, which suggests an existing downside position was rolled lower in strike and forward in time.

Puts fix the price where a stock can be sold, so they make money to the downside. (See our Education section.) Investors use them to hedge long positions or to speculate on a drop.

COG rose 0.23 percent to $21.84 yesterday. It's fallen sharply since stalling earlier this month at $24, a level where it bounced in August and September. Some chart watchers may consider that kind of price action as bearish.

Overall option volume was 6 times greater than average. Puts outnumbered calls by a bearish 7-to-1 ratio.

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