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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.
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