3D Systems Corporation (DDD) Traders Bet On a Rebound

Short interest levels are high on 3D Systems Corporation (DDD)

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Published on Mar 2, 2015 at 2:05 PM
Updated on Jun 24, 2020 at 10:16 AM

3D Systems Corporation (NYSE:DDD) is down 1.4% this afternoon to trade at $30.03, after the company announced an agreement with health care products distributor Henry Schein, Inc. (NASDAQ:HSIC). However, at least one group of options traders is keeping the faith in DDD.

At last check, calls are being exchanged at more than triple the pace of puts. Most active is the weekly 3/6 31.50-strike call, where buy-to-open activity is detected. In short, these buyers are confident DDD will rebound back above $31.50 by week's end, when the series expires. Earlier today, in fact, the shares rose as high as $31.75.

While DDD has taken a step back since its intraday high, the $30 level appears to be serving as a foothold once again. Since Feb. 11, this area has not been breached on a daily closing basis.

Elsewhere, short sellers are waiting for technical support to falter. Nearly 35% of 3D Systems Corporation's (NYSE:DDD) float is dedicated to short interest, which would take over two weeks to buy back, at typical daily trading levels. That said, if support holds and the equity starts creeping higher, an exodus of shorts could result in tailwinds.


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