Drys

His best bet at this point is to cash-in from the short 5's. Forget the long 7.5's now....they're toast.
If the trend continues down like today, he's golden.
The worst scenario of course is DRYS at 7.0 in 3 weeks. That doesn't look likely.

Note: No wonder why Cramer lost his mind from years of tracking in his head all of his option positions !
 
Exactly, the 5s will likely expire worthless though I will probably cover the spread for less than $40, hopefully this week.

I could cover right now and only lose about $1K on the trade as posted (I sold the stock on the pop this AM and scalped more than that) which is acceptable given that I was looking for somewhere between $25K-100K if Drys had reported some positive stuff. My risk was maybe $5K the way I saw it and having just made $17K off the the 5s when the rig contract came out (luck I know but I'll take it) I had a some wiggle room.

Its all about risk/reward and while I didn't get the pay out I was hoping (though not expecting) for I still like the trade as taken and the only thing I would have done differently in hindsight is to have waited a day before initiating the position in the 7.5s paying $25 instead of $40 for the 1st 80.
 
If we continue up slowly here, that will be a bad outcome for your position in DRYS. However, I still think this is a hold till expiration. This market can turn around on a dime and that's what you'll need to pick up the 5's premium with assurity.
 
For now I can afford to wait and see what happens, today's move surprised me and I lost on a scalp but will give it at least another week then will likley close the position even if it will be at a loss.
 
Quote from Mvic:

For now I can afford to wait and see what happens, today's move surprised me and I lost on a scalp but will give it at least another week then will likley close the position even if it will be at a loss.
More...
So even if you made some money from the close of the stock position, the aggregate long 7.5 premiums were more than the short 5.0's ?
IOW: if DRYS closes at 4.5 on expiration, it's still a loss for you ?
 
No stock just the same option position, I just tried a repeat of yesterdays scalp and lost 12c. If I held until exp and drys is under $5 I am up a few K on the options alone but I won't hold that long.

I probably should have unloaded some of the 7.5s today but will wait and see what happens this week, stayed in them because DRYS was so strong despite the market's weakness and the poor earnings and on such high volume too so who knows, maybe the lottery ticket ends up paying off after all.
 
Wow, DRYS up to 6 on 56 million. Very strong. You might just get something for those 7.5's next week. This is getting interesting....can you hold the 5's short till expiration ? That's gonna cost you margin-wise if the 7.5's are gone.
 
I hope this chart will assist you with your trading. My opinion is that DRYS will be a fantastic short if it seems to pivot off of that line. What do you think?

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