DSX - Call Buyers Accumulate

Discussion in 'Options' started by livevol_ophir, Aug 9, 2010.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    DSX is trading $13.40.

    <img src="http://4.bp.blogspot.com/_hMry1m7UF10/TGBcMN6B8iI/AAAAAAAAD_U/I7K-Q29BATo/s1600/dsx_summary.gif">

    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 (<A href="http://livevol.blogspot.com/2010/08/dsx.html">in the article</a>).

    The Options Tab (<A href="http://livevol.blogspot.com/2010/08/dsx.html">in the article</a>) illustrates that the Aug calls are opening (compare OI to trade size). The Sep calls are ambiguous.
    The IV30&#8482 is up 2.4% today with the call buying.

    Finally, the Charts Tab (6 months) is below (<A href="http://livevol.blogspot.com/2010/08/dsx.html">in the article</a>). The top portion is the stock price, the bottom is the vol (IV30&#8482 - red vs HV20&#8482 - blue). The yellow shaded area at the very bottom is the IV30&#8482 vs. the HV20&#8482 vol difference.

    The stock has been stuck in a rut for quite some time and as of right now, the IV30&#8482 is well above the HV20&#8482 (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 (<A href="http://livevol.blogspot.com/2010/08/dsx.html">in the article</a>); just interesting to note how it's popped from midday while the Sep vol has climbed with it.

    <img src="http://2.bp.blogspot.com/_hMry1m7UF10/TGBeOCDrZZI/AAAAAAAAD_8/jnc0zYSsXNU/s1600/dsx_tick_chart.gif" width = "450">

    This is trade analysis, not a recommendation.

    Details, trades, prices, vols, skews, charts here:
    http://livevol.blogspot.com/2010/08/dsx.html