NEW DIRECTIONAL CALL PLAYS

Diana Shipping Inc – DSX – close 15.17 change +0.59 stop 14.32

Company Description:
Diana Shipping Inc. is a holding company. The Company is a global provider of shipping transportation services. It specialize in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes. As of December 31, 2009, its fleet consists of 22 dry bulk carriers, of which 14 are Panamax and eight are Capesize dry bulk carriers, having a combined carrying capacity of approximately 2.4 million dead weight tons (dwt). As of December 31, 2009, its fleet consisted of 13 modern Panamax dry bulk carriers and seven Capesize dry bulk carriers that had a combined carrying capacity of approximately 2.2 million dwt. Each of its vessels is owned through a separate wholly owned subsidiary. In January 2010, the Company established its wholly owned subsidiary Diana Containerships Inc. (DCI), with the purpose of acquiring containerships.(source: company press release or website)

Why We Like It:
DSX has broken out of a downtrend line from January 11 and also has upward trend line support from February 5. DSX curled back around to test the broken downtrend line which intersected with its upward trend line yesterday. The stock has also been in an upward sloping channel since February. DSX had a monster day today closing up +4.05%. I am suggesting opening call positions if DSX retraces some of today's gains. I would like to buy calls if DSX trades down to $15.02 which is just above the stock's 20-day SMA. I envision this as a fairly quick trade lasting about one week. We'll place a stop at $14.32 which is below Monday's low and all of the stocks moving averages. Our target is $15.65 with a more aggressive target at $16.00.

Trigger to open calls at $15.02

Suggested Position: Buy CALL MAY $15, current ask $0.70, estimated ask at entry $0.60

Annotated Chart:

Entry on April xxth at $ xx.xx
Earnings Date 5/6/2010 (unconfirmed)
Average Daily Volume = 1.2 million
Listed on April 20th, 2010