Options lovers, news junkies, stock market enthusiasts

Dryships (Drys) has made an amazing run ahead of earnings over the past 4 trading days…If you bought the Feb 17, 2012 2.50 Call Options, let’s not get greedy and it might be time to lock in some big profits today. Or at least take 60% off the table. The contracts that I purchased on Friday Feb 3, 2012 for $13 a contract are now trading at $37 a contract! That’s a huge gain and a smart trader will lock in some of those profits…keep in mind that if Drys has a good earnings report next week, these contracts could still run to $75 plus a contract before Feb 17, 2012 expiration…wish I had crystal ball folks…The more conservative play is to take 60% of your money off the table on the shorter term options contracts and get long the 2014 $5 strike Call Option Leaps on Drys for the bull run…This stock traded $120 a share only a few years back and I would love to see it run back to $20 or $30 a share in the next five years. That is why I am also long shares of the common stock of Drys as well, which have no expiration date…Pending the company never files for bankruptcy protection…Let’s hope not… See below the ten day chart on Drys courtesy of Fidelity Investments:

Chart

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