Sold DRYS Naked put
I can’t remember what turned me back towards DryShips Inc (DRYS) back on Sunday, June 1st, when I entered my order to sell options on it. They’ve been covered by Motley Fool, Barron’s and TheStreet.com among others many times. I already have a position in one of their competitors, DSX, and didn’t want to add to my position on it. I’m not alleviating my risk completely just because I picked another company within the same industry, but DRYS approaches their business a little differently. They don’t lock in long term contracts like DSX which increases DRYS’ volatility and premiums.
Looking at the fundamentals, DRYS has a much lower p/e (5.13) than its biggest competitors, EGLE (22.55), EXM (7.81) and GNK (10.11) and the shipping industry average of 14.88. That leaves a lot of room for error with DRYS’ earnings which translates into a good cushion for me, especially since I set my strike well out of […]
Original post by Alex Fotopoulos