The Stock Locking In Six-Figure Day Rates

Dear WallStreetZen Member,

This week, our Smart Leverage Alert centers on DHT Holdings, Inc. (DHT).

DHT Holdings operates one of the most modern large-crude-tanker fleets in the world — a fleet of Very Large Crude Carriers that haul oil across global trade routes. Like the broader tanker space, DHT is a direct play on one thing: the day rate those ships command — and right now that rate is running hot.

Crude-tanker rates have surged to some of the strongest levels in years, driven by tight supply and lengthening voyages amid Middle East disruption. DHT is capturing it on both ends: its spot ships are earning premium rates, while the company just locked in a three-year charter on one vessel at $100,000 per day beginning this month — providing years of cash-flow visibility. The result was a record second quarter, well ahead of expectations.

That cash flow funds a standout dividend — DHT recently declared its 66th consecutive quarterly distribution, paying out essentially all of its ordinary net income to shareholders.

Our Zen Ratings model is firmly on board. DHT earns an A rating — the equivalent of a Strong Buy — placing it in the top 2% of more than 4,600 stocks, and it's the #3-ranked name in the A-rated Oil & Gas Midstream industry.

Looking at the Component Grades behind that score, DHT ranks in the top 11% for Value, the top 8% for Momentum, and the top 2% for our Financials factor — an attractively priced business, riding a powerful trend, and backed by exceptionally strong financials.

Our Logic

With Zen Options Essentials, we use "Smart Leverage" — Deep-In-The-Money options that let you control shares for a fraction of the cost, with your maximum risk strictly defined from day one.

The "Smart Leverage" Setup: DHT Long Call

Given the record earnings and the powerful tanker-rate cycle behind DHT, here's how we're structuring the trade using Smart Leverage — Deep-In-The-Money calls that move nearly dollar-for-dollar with the stock, but with strictly defined risk from day one. 

Instead of committing about $4,704 to own 200 shares outright, two Deep-In-The-Money Calls let you control those same shares for about $1,172. 

• The Play: Two $20 Strike Calls (Expiring Apr 16, 2027)
• Delta: 0.8585 — Right in our sweet spot. This option moves nearly dollar-for-dollar with the stock. You get the upside with significantly less capital at risk.
• Intrinsic Value: ~85% — The vast majority of what you pay is real value, not time decay. This is what separates a Smart Leverage setup from the kind of speculative options trades that blow up amateur accounts.
• Leverage Multiple: 2.66x — Every dollar moves 2.7x harder than the stock, while the deep ITM strike still keeps meaningful downside protection versus a naked speculative call.
• The Target: For this position to double (+100%), DHT only needs to reach approximately $31.28 — a roughly 25% move in the stock that produces a 100% return on the option premium.

Why Options Over Shares?

A roughly 25% move in DHT stock would be a solid return for shareholders. In these 2 deep-in-the-money options, that same move has the potential to double your investment while putting only about $1,172 at risk instead of $4,704. 

That's the power of Smart Leverage: stock-like upside with a fraction of the capital and strictly defined risk from day one.

What To Do Next?

DHT is just one of the setups our Zen Options Essentials TradeFinder identified this week.

And the best part? You don't need to spend hours doing research to find these trades. The TradeFinder does the heavy lifting — scanning for Deep-In-The-Money options with the optimal Delta, the right Intrinsic Value, and the right Leverage Multiple — so you can evaluate a trade like this in minutes.

How is that possible?

Because the best options trades aren't about picking exotic strategies or timing the market perfectly. They're about finding great stocks…and using Smart Leverage to control your risk while amplifying your upside.

EXACTLY what the Zen Ratings model is built to find.

EXACTLY what this methodology has been delivering.

If you'd like to see how this entire methodology works, start by watching our presentation, "Options Trading with the Zen Ratings." It walks through the Smart Leverage framework, the TradeFinder, and how we identify these opportunities step by step.

Options Trading with the Zen Ratings >

Or, perhaps you are ready to start using Smart Leverage by becoming a Zen Options Essentials member. Click below to join: 

Zen Options Essentials >

Happy Investing,

Mijusko Sibalic

Senior Writer, Zen Options Essentials

Want to get in touch? Email us at news@wallstreetzen.com.