OptionsHouse

Options Trading News

October 15, 2013  Tue 3:47 AM CT

COG: SEE CHART GET CHAIN FIND STRATEGIES
A big call trade topped the option activity in Cabot Oil & Gas yesterday, but it isn't overly bullish.

optionMONSTER systems show that a trader bought 4,722 October 40 calls for $0.04 against previous open interest of 17,787 and sold 4,722 November 40 calls for $0.59. The November contracts were above that strike's previous open interest of 1,696, so it is a new position.

This is almost certainly a roll from October to November. The calls could have been sold naked with a bearish bias, but it is also quite possible that they were traded against long shares in a covered-call position, which would be bullish only up to the strike price. (See our Education section)

COG was up fractionally on the day to close at $36.78. The stock hit a high above $40 at the start of September was below $35 last week.

More than 16,000 COG options changed hands yesterday, 3 times its daily average for the last month.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

Introduction to Synthetics

"Synthetics" is the name given to the relationship of two separate positions, constructed differently, that have the same exact risk and reward at each and every price level. They say that there is more than one way to skin a cat...well, there is always more than one way to create an option position...

View more education articles »