Dryships (DRYS) sees a second day of increasing volume. Shares are up 20 cents to $2.63 on volume approaching 14 million. Typical volume in the first two hours is about 2 million shares. Meanwhile, options activity is running 3.5X the daily average. 21,000 calls and 1,245 puts traded on the stock. Today’s flow seems to include buyers and sellers. Feb 2.5 calls, which are now 13 cents in-the-money and expiring in 11 days, are the most actives. The top trade is a 411-lot on the 15-cent bid and is possibly a liquidating trade. Mar 2.5, Feb 3, Mar 3, and Jan 2.5 calls are the next most actives and levels of implied volatility are moving up 1.5 percent to 84. DRYS saw a pop late Friday on increasing volume as well (see 2/3 color). The gains in the stock and high volume are possibly related to news today that the company’s Oil Drill UDW unit struck a drilling contract with Norweigan Continental Shelf, which will add about $653 million in revenues to the backlog.
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.