Call Traders Target Crumbling 3D Systems Stock

The company announced a dismal full-year revenue forecast

Deputy Editor
Aug 9, 2022 at 3:11 PM
facebook twitter linkedin


Options bulls seem to be capitalizing on 3D Systems Corp's (NYSE:DDD) post-earnings plummet today. The shares are down 15.2% to trade at $11.23 at last glance -- earlier as low as $10.67 -- after the company's second-quarter results miss and gloomy full-year revenue forecast. 

So far, 30,000 calls have been exchanged, which is 28 times the average intraday amount, in comparison to just 5,404 puts. The weekly 8/12 13-strike call is the most popular by far, with new positions being bought to open there. 

DDD could've already been due for a short-term drop, as its 14-day Relative Strength Index (RSI) of 80 sits firmly in "overbought" territory. However, shorts have started to cover their bets, and short interest still represents 9.3% of the stock's available float, which could provide tailwinds. 

Analysts have yet to chime in after the disappointing earnings event, but the majority of the brokerage bunch is already bearish toward the equity. Of the five analysts in coverage, four carry a "hold" or worse rating on DDD. 

Year-to-date, 3D Systems stock is down 48%. The security appears to have found a floor at the $9 level, but plenty of long-term moving averages linger above as potential pressure, including the 150-day trendline. 

DDD August9

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners