Puts Rolled on Cabot Oil & Gas (COG)

Shares of Cabot Oil & Gas (COG) are trading lower on the session by 1.87%, trading at $43.02. The stock has been ticking lower for the past few sessions, today breaking through the 50-day moving average.

An institutional trader is rolling a put position in the name today. Shortly after the opening bell the November $45.00 put was sold 2,000 times, near the bid, for $2.80 and the November $43.00 put was purchased 2,500 times, on the offer, for $1.75.

Given the open interest on both strikes, 2,095 and 190 contracts, this is clearly a case of long puts sold into the stock’s slide with the trader reuping his or her short exposure on a lower strike.

30-day implied volatility is off 3.6% today to 39.29%; 10-day realized vol is registering 22.57%.

Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. 

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.