3D Systems Corporation (DDD) Bears Bank On a Late-Day Slide

3D Systems Corporation is seeing a rush of last-minute put buying

Digital Content Group

Dec 26, 2014 at 1:39 PM

It's been a miserable year for 3D Systems Corporation (NYSE:DDD), which has shed nearly 65% of its value in 2014. However, the shares are bucking this longer-term trend this afternoon, up 7.5% at $32.82, and are poised to land above their 20-day moving average for the first time since late November. Nevertheless, eleventh-hour options traders are wagering on a retreat by today's close.

So far, DDD options are crossing at double the expected intraday clip. Most active is the weekly 12/26 32-strike put, which is seeing significant buy-to-open activity. In short, these speculators are aiming for the stock to fall back below $32 by 4 p.m. ET, when the weekly series expires.

Today's options traders aren't the only ones on the Street who are skeptical of DDD. Over two-thirds of covering analysts rate the shares a "hold" or worse. Plus, 35.5% of the equity's float is sold short, which would take about 16 sessions to buy back, at 3D Systems Corporation's (NYSE:DDD) typical daily trading volume.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!