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

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

by

Published on Dec 26, 2014 at 1:39 PM
Updated on Apr 20, 2015 at 5:32 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.


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