Diana Shipping is near its all-time lows, but one trader sees a limit to further downside.
DSX down fractionally today at $7.37. The provider of shipping transportation services announced yesterday that it would increase its quarterly dividend, but that didn't keep the stock from falling sharply.
Shares are back near support and not far of their lifetime closing low of $6.93 set at the start of October. DSX traded above $10 in mid-February and above $17 a year ago.
A trader sold 4,000 December 7 puts for the bid price of $0.70, according to optionMONSTER's systems. Open interest at the strike was just 52 at the start of the session, so this is a new position.
The put selling is a bet that DSX will remain above $7 through expiration and that the low will hold. The trader is also showing a willingness to buy shares if they are below that strike price. (See our Education section)
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