$DRYS Call Options Spike On MS Upgrade, Drilling Contract (Ocean Rig UDW)

DryShips (DRYS) call options were active on Monday. I originally found this information on Andrew Wilkinson's report on Seeking Alpha. The action could've been related to the Morgan Stanley's DRYS upgrade to "equal-weight" from "underweight" and the $5.50 price target. The chart looked vulnerable around downtrend resistance and the 50 day moving average as well. It took out both of those levels on Monday and is now testing the 200 day. First, the trades:
"Traders scooped up some 2,300 in-the-money calls at the October $4.0 strike for an average premium of $0.45 each. Optimists also picked up roughly 6,700 calls at the higher October $5.0 strike by shelling out an average premium of $0.05 apiece.

"Bulls looked to the November $5.0 strike to take ownership of some 4,000 call options at an average premium of $0.14 a-pop." [Source: Andrew Wilkinson via Seeking Alpha]

So we got all of this call option activity and then boom....

ATHENS, GREECE – September 28, 2010 - DryShips Inc. (NASDAQ: DRYS) (the “Company” or “DryShips”), a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, announced today that its fully-owned subsidiary Ocean Rig UDW Inc. has received a Letter of Award from an American exploration company for a four well contract for exploration drilling offshore West Africa for a period of about 300 days, commencing in the first or second quarter of 2011. The contract value is approximately USD 135 million. The contract is subject to final documentation.

Mr. George Economou, Chairman and CEO of DryShips Inc. and interim CEO of Ocean Rig UDW Inc., said:

“We are pleased to secure employment for one of our first two drillships that will be delivered from Samsung during the first quarter 2011. This will serve as a catalyst to securing bank financing on preferred terms. We continue to see strong interest for our state of the art sixth generation drillships operated by our experienced ultra-deepwater operator Ocean Rig.”
(Source: DryShips.com)
Also read: DryShips scores deep-water deal - Upstream Online
"The contract, valued at $135 million and subject to final documentation, was awarded to DryShip's offshore unit Ocean Rig UDW."

$DRYS ended up 8.5% on the day at $4.85 and the calls spiked in value. The October $4 Call rose 77% to 0.85 on 3,986 contracts, October $5 Call rose 220% to 0.16 on 20,056 contracts and the November $5 call rose 128% to 0.32 on 8,660 contracts! Decent green percentage points right there for Trader Joe. Here is OptionMonster's take. Were these trades legit?