Is Rio Tinto Shopping DryShips? (DRYS, RTP)

Shares of DryShips Inc. DRYS are higher on the session by 5.215, currently trading at $4.24. The stock has been moving largely lower over the past six months, finding resistance at the 50-day moving average along the way. There has been some chatter on trading desks that Rio Tinto RTP is shopping the name as a diversification play; the marriage doesn’t seem to fit, but the options are saying that it’s a possibility. Right after the opening bell, traders were coming after the $4.00 and $5.00 call strikes (in size) in September and October; smaller lot purchases were also detected on the $5.00 and $6.00 strikes in December, January 2011, and January 2012. Volatility is seeing a 10% pump higher today as well. DryShips Inc. is a holding company. The company is engaged in the ocean transportation services of drybulk cargoes worldwide through the ownership and operation of the drybulk carrier vessels and deepwater drilling rig services through the ownership of ultra-deep water drilling rigs. As of April 6, 2010, the company owned, through its subsidiaries, a fleet of 39 drybulk carriers consisted of seven Capesize, 28 Panamax, two Supramax vessels and two Panamax newbuilding vessels, which have a combined deadweight tons of approximately 3.3 million dead weight tons.