Option Bears Aren't Buying 3D Systems (DDD) Bounce

3D Systems Corporation's (DDD) May 30 put is in focus today

by Karee Venema

Published on Apr 10, 2015 at 1:38 PM
Updated on Jun 24, 2020 at 12:37 PM

Put players have been busy 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 equity's 10-day put/call volume ratio of 1.25 rests higher than all other comparable readings taken in the past year.

In today's session, puts are trading at two times the average intraday pace, and DDD's May 30 strike has attracted the most attention thus far. It's possible some traders are purchasing new positions here, as they gamble on the equity settling south of the strike at the close on Friday, May 15 -- when front-month options expire.

On the charts, the stock got off to a slow start to 2015; however, since bottoming at a two-year low of $26.29 in mid-March, DDD has been making technical amends -- up 13.7%. This afternoon, the shares are 3.9% higher at $29.88, possibly due to a halo lift from fellow tech issue General Electric Company (NYSE:GE) or extended exuberance from the firm's newest acquisition. Regardless, 3D Systems Corporation (NYSE:DDD) is on its way to notch its highest weekly close since late February. Should the stock extend this bounce, a capitulation from some of the weaker bearish hands could help fuel DDD's fire.

Daily Chart of DDD Since February 2015

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