Dryships (DRYS) adds 34 cents to $4.17 and options are busy today after Goldman Sachs upgraded the stock to Buy from Neutral. 32,000 calls and 8,260 puts traded on the dry bulk shipper. The top trades are part of a three-way spread after 5,000 Sep 3.5 puts traded at 17 cents while the Sep 5 – 6 call spread traded at 12 cents, 5000X. All three legs traded on the ISE, where sentiment data suggest puts were sold to finance the call spread. If so, the strategist is opening a position and probably looking for shares to drift beyond $5 through the September expiration.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.