DryShips (DRYS) Stock: This Run Is Over, Abandon Ship!

DryShips Inc. (NASDAQ: DRYS)

DryShips is having a rough day in the market today. The stock started off in the green, but quickly found its way to the red and is continuing down that path. However, if you’re looking at this as an opportunity, you may want to consider backing away. Today, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to DRYS ahead.

What We’re Seeing From DRYS

As mentioned above, DryShips isn’t off to the best of days in the market today. While the stock started with strong gains from pre-market activity, as soon as the bell rang, we started to see movement in the downward direction. This quickly brought the stock into the red, where it has stayed for most of the day. At the moment (12:11), DRYS is trading at $10.39 per share after a loss of $1.42 per share (12.00%) thus far today.

Why The Stock Is Falling

At this point, DRYS is about as volatile as a rollercoaster. We’ve seen drastic gains followed by drastic declines and more drastic gains. However, I’m under the impression that this wild ride is soon to be over. However, before it ends, those locked into their seats are going to feel that queasiness in their stomachs at least one more time.

The reality is that there is a lot at play here, and, while shipping sector news was good, there’s still plenty to be desired. In the case of DRYS, we also saw an offering that stank of dilution. Now, we’re seeing the game slowly coming to an end, and, from either the technical or the fundamental side, things just aren’t looking so perky.

What We’ll Be Watching For Ahead

Moving forward, we’ll be keeping a close eye on the shipping sector as a whole. DRYS recently benefited greatly from a buzz around the Trump Presidency and the Baltic Dry Index. However, as these stories fizzle, so too does the stock price. Nonetheless, more shipping news could lead to movement. Perhaps more importantly, we’re going to be watching for large put option purchases and further declines. Abandoning ship and counting gains now is likely a good move.

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[Image Courtesy of Wikimedia]

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