Options Volume Ramps Up as DDD, CDLX Stocks Surge

January DDD calls are popular today

by Josh Selway

Published on Jan 13, 2020 at 1:51 PM

The shares of 3D Systems Corporation (NYSE:DDD) and Cardlytics Inc (NASDAQ:CDLX) are trading sharply higher today, and in response options volume is heating up on both. Below is a brief rundown on how traders are approaching the shares of DDD and CDLX.

For DDD, the 3-D printing specialist is trading up 11.3% at $11.12, on pace for its highest close since the May bear gap, taking out the 320-day moving average for the first time since March. The price action comes after Craig-Hallum upgraded the equity to "buy" from "hold," and set a $14 price target.

Call volume was last seen running in the 99th annual percentile, outpacing puts 7,800 to 1,300. The most popular contracts are the January 2020 10-, 11- and 12-strike calls, and at least the former two were home to notable open interest coming into today. As such, it could be that DDD options traders are closing positions following today's surge.

Call buying has been extremely popular on 3D Systems. The stock's 10-day call/put volume ratio from the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 17.41, which ranks in the 91st annual percentile.

DDD stock jan 13

As for Cardlytics, the stock is roaring to record highs today, last seen up 20.6% at $82.29, after peaking at $83.50. This latest move comes thanks to the company's rosy preliminary 2019 results, which included a raised revenue outlook. CDLX shares are now up more than 500% in the past year.

Options traders could be betting on more upside, too, by seemingly buying to open the February 85 call. This position is home to peak open interest on CDLX, and open interest overall is ranked in the 100th annual percentile. Premiums have skyrocketed on Cardlytics, though, with the 30-day at-the-money implied volatility coming in at 67.3%, ranking in the 98th annual percentile.

CDLX stock jan 13


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