Monday, August 9, 2010

Diana Shipping (DSX) - Call Buyers Accumulate

DSX is trading $13.40. The LIVEVOL™ Pro Summary is below.



The company has traded over 6,000 options on total daily average option volume of just 1,403. All but 49 contracts have been calls. The largest trades have been purchases of the Aug 14 and Sep 15 calls. The Stats Tab and Day's biggest trades snapshots are included (click either image to enlarge).





The Options Tab (click to enlarge) illustrates that the Aug calls are opening (compare OI to trade size). The Sep calls are ambiguous.



The IV30™ is up 2.4% today with the call buying.

Finally, the Charts Tab (6 months) is below (click to enlarge). The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue). The yellow shaded area at the very bottom is the IV30™ vs. the HV20™ vol difference.



The stock has been stuck in a rut for quite some time and as of right now, the IV30™ is well above the HV20™ (41.80 vs. 29.60). This is a pretty risky call purchase given the vol level and the stock's recent "nothingness."

I have provided the tick chart below (click to enlarge); just interesting to note how it's popped from midday while the Sep vol has climbed with it.



This is trade analysis, not a recommendation.

Legal Stuff:
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