Dryships Inc. ($DRYS) stock ripped an amazing +61% on the back of restructuring news by $PRGN (Paragon Shipping). We call them "sympathy moves" ... piggybacking off someone's news. Sympathy moves usually do reverse by the end of the day. DRYS was simply way overdone to the upside and so we starting shorting it at $3.71 all the way up to $4.56.
DRYS collapsed as soon as the squeezing and dumb long chasers were cleaned up and we covered into weakness. Another easy contrarian short squeeze play we do numerous times in the MookTrader stock chatroom. All stock trades are called out live as the trade occurs real-time in the MookTrader chat room.
Net Profit: $3,192
(We did another 5000 shares short trade in the name later and made another $402 in it. Due to spacing issues, we could not picture it on the chart. Total profit: $3,594)