Oppenheimer analyst G. Scott Burk said DryShips announced another ATM offering, with plans to sell up to $475 million of stock from time to time. Burk noted that at its current price of about $10 per share (before the May 8 open), this implies another 47.5 million shares added, or dilution of about 26% to current shareholders.
However, at 7.80/share, one can buy the currrent underlying shares and write the june strike 6 calls at 2.55/contract for anintrinsic time value of .70/share! Not bad. At 6/share, would you be willing to call it a bargain? I am!