One Final Trade (For Speculators Only!)

Play DRYS Calls

By Bryan Bottarelli
Friday, December 07, 2007 11:40 AM EST
Fri, 7 Dec 2007 16:40:00 GMT

Dear Bottarelli Research Member,

For all you speculators out there, I think we have an opportunity for a quick upside play on DryShips (DRYS – NASDAQ). As you know, the dry bulk shippers have been one of the strongest market sectors of 2007, and DRYS is the best dry bulk shipper that your investment dollars can buy.

DRYS

DRYS operates a total of 35 drybulk vessels which carry commodities such as coal, iron ore, grains, bauxite, phosphate, fertilizers, and steel products, and as you can see from the chart above, the stock makes extremely aggressive upside and downside moves. Using mid-November’s low of $70 as a benchmark support point, today’s upside tick has established a higher-low at $80, which means that DRYS now looks poised to take another shot at testing resistance at its 50-day moving average at $100. That’s $12.00 higher than current levels, so if you’re willing to play this move, here’s the trade!

PLAY: Buy the DRYS December 90 Calls (DQR LR) at or under $5.80, good for the day. Current bid/ask spread is $5.30 to $5.50. Place a protective stop limit at $3.10.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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