Call buyers strike another gusher in $COG

Bullish option traders are striking another gusher in Cabot Oil & Gas (COG) today.

On Sep. 24, Market Rebellion’s Unusual Activity Service found that 4,997 Weekly $21 calls, expiring this Friday, were bought for $0.25 above the existing open interest of 64 contracts with shares at $20.21.

Those calls sold for as much as $1.60 so far today, over 6 times their purchase price. The stock rose 11.73% in the same time period, illustrating the kind of leverage that can be achieved with options.

This marks the second winning trade in the name to be posted on Market Rebellion in the last week.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

COG was last higher today by 4.05% to $22.72, setting a new 52-Week high earlier at $22.94.