Option Traders Split on Bouncing DryShips Inc., Diana Shipping Inc.

DryShips Inc. (NASDAQ:DRYS) and Diana Shipping Inc. (NYSE:DSX) are higher after the Greek parliament voted in favor of a bailout plan

by Karee Venema

Published on Jul 16, 2015 at 1:55 PM
Updated on Jun 24, 2020 at 10:16 AM

Although corporate earnings season has edged its way into the spotlight, Wall Street continues to keep a close eye trained overseas. Specifically, in the latest chapter in Greece's debt drama, the country's parliament overnight approved a stiff austerity plan in hopes of avoiding a potential "Grexit." Here's a closer look at how two Greek shipping concerns -- DryShips Inc. (NASDAQ:DRYS) and Diana Shipping Inc. (NYSE:DSX) -- are benefiting from the bullish buzz.

DRYS, for example, has popped 10.4% to trade at $0.61, and is sitting just one penny shy of its intraday high. It's been a big month for the stock amid all the Greek-related debt drama, and since hitting a record low of $0.49 on July 7, it has rallied more than 24%.

Option traders, meanwhile, have been initiating long calls over puts at a near-annual-high clip in recent months. In fact, DryShips Inc.'s 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 17.52 ranks in the 98th annual percentile.

Elsewhere, DSX was up 1.7% at its intraday peak, but was last seen 1.1% higher at $7.60. The stock has been making strides since tagging a two-year low of $6.02 in early April, tacking on 26%. However, this uptrend has been contained near the $7.80 mark -- an area that supported the shares last November.

On the sentiment front, option traders have shown a fondness for puts over calls among options slated to expire in three months or less, per Diana Shipping Inc.'s Schaeffer's put/call open interest ratio (SOIR) of 1.06 -- in the 72nd annual percentile. Simply stated, speculative traders are more put-heavy than usual toward the stock.

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