Call Options on EGLE on 4/18/2022

Eagle Bulk Shipping Inc. (EGLE) engages in the ocean transportation of dry bulk cargoes worldwide. 

The company owns, charters, and operates dry bulk vessels that transport a range of bulk cargoes, including iron ore, coal, grains, fertilizers, steel products, petcoke, cement, and forest products.

It serves miners, producers, traders, and end users. As of December 31, 2021, the company owned and operated a fleet of 53 vessels.

On March 3rd, Eagle Bulk Ship (EGLE) reported Quarter December 2021 earnings of $4.28 per share on revenue of $184.7 million. The consensus earnings estimate was $5.58 per share on revenue of $146.0 million. It reports next on May 5th. 

Shares are heading higher in an upward trading channel. Call options should do well for this stock. Note that the war in Ukraine has pushed commodity prices higher giving pricing power to the shippers such as Eagle.

We will buy May Call Options

Entry Point: $65.00

Trading Range: $36.18 - $70.98

Trade Buy 1 May $65.00 Call at $4.00 For a net debit of $4.00 Profit/Loss Analysis Breakeven at $69.00 Maximum profit is unbounded Maximum loss is ($400.00) at strike of $65.00 Closing Summary Sold 1 May $65.00 Call at $4.50

Position closed on 5/19/2022 at price of $4.50 with a 12.50% gain in 31 days.

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