Add DRYS Calls

Plus, Maintain BX and AMZN

By Bryan Bottarelli
Tuesday, July 31, 2007 10:11 AM EDT
Tue, 31 Jul 2007 14:11:00 GMT

Dear Bottarelli Research Member,

With the markets once again opening higher, I think it’s time to establish an upside position in DryShips (DRYS – NASDAQ). Widely considered to be the best-positioned dry bulk shipping company in the world, DryShips has a 35-ship fleet that carries coal, iron ore, grains, bauxite, phosphate, fertilizers, and steel products. As you can see by the chart, the stock has established a near-term support level at $50 and is now looking to make another run at its recent $65.00 high, so let’s play this move using August calls.

DRYS

PLAY: Buy the DRYS August 60 Calls (DQR HL) at or under $4.30, good for the day. Current bid/ask spread is $4.00 to $4.10. Place a protective stop limit at $2.50.

At the same time, maintain your AMZN September 85 Calls (ZQN IQ) and your BX September 25 Puts (BX UE). I purposely chose September expirations on each of these plays because I expected a higher-level of volatility, so if we can withstand the momentary bumps I think the prevailing trends will come back our way.

AMZN

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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