Diana Shipping Inc (DSX) is a provider of shipping transportation services around the world. Their specialty is dry goods such as commodities and coal. The company’s stock is currently trading around $11.70 in a 52 week range of $6.93-$13.24. The stock has performing quite well this year adding gains of over 60% year to date and over 67% in the past 12 months. Bullish order flows in the options market suggest that this trend could continue as institutional traders are betting on more upside in DSX. Earlier in today’s session a trader bought 2,250 DSX Jun 16 calls for $0.50. This is a $112,500 bet that shares of DSX will trade above $16 on June expiration. While this trader is betting on long term upside in DSX we believe there is an opportunity for a swing trade in DSX stock. Using the Ichimoku Cloud we will identify a level of support and use that as a stop.
Trade: Buying DSX stock at $11.70 with a stop at $11.40
Risk: $0.30 per share
Target #1: $12.00
Target #2: $12.30
Target #3: $12.60
