Put buying has been
picking up speed in
3D Systems Corporation's (NYSE:DDD) options pits in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio has jumped to 0.78 from 0.62 over the past two weeks. What's more, the current ratio ranks just 2 percentage points from an annual peak.
In the soon-to-be front-month series, peak put open interest can be found at the deep in-the-money June 40 strike, where 12,736 contracts are currently in residence. It appears the majority of these options have been bought to open -- including 5,000 new positions that were purchased yesterday at the ISE, CBOE, and PHLX -- as traders bet on the stock to extend its retreat below $40 over the next five weeks.
The skepticism toward DDD is seen
elsewhere on the Street. For starters, short interest edged higher in the latest reporting period, and now accounts for 35.3% of the equity's available float -- representing 10.1 times DDD's average daily trading volume.
Elsewhere, roughly 78% of analysts covering the shares maintain a "hold" or worse recommendation. Plus, the average 12-month price target of $26.16 stands at a 23.7% premium to current trading levels.
On the charts, 3D Systems Corporation (NYSE:DDD) has struggled, shedding nearly 36% year-to-date. Today, the shares are off 4% at $21.13 -- and earlier hit a two-year low of $21.05 -- after the company announced it
David Styka will replace Ted Hull as chief financial officer, effective at today's close of business.