2:00pm (EST)
The last time we checked in on 3D Systems (DDD, $77.03, up $0.93) shares had cleared double-nickels and closed at $57.70 on 10/22.
The chart work we were doing was showing a run past $60 could be in the cards and shares have come up all Spades since.
The November 55 calls (DDD131116C00055000, $21.50, up $1.00) we were following expire this week and while this wasn’t an official trade, we have received a few emails this week from some of our subscribers thanking us for Monday’s pop past $70 as they have easily doubled and tripled their investment.
From our October 23rd Watch List:
3D Systems (DDD, $57.70, up $0.93)
November 55 calls (DDD131116C00055000, $5.00, up $0.50)
Thoughts: The close above $55 gets $60 in the mix. Support is at $53.50 and a close below $50 would signal a possible short opportunity. (END)
We dropped coverage of the trade because we wanted to find some “cheaper” options to play as the November 55’s were pushing $5 and wew anted to go further out with the options to play the explosive move we saw coming.
Needless to say, we didn’t get back to the trade in time to play the December options on the move past $60.
We should have stuck to our instincts and taken “small” positions at $5 as the options are up 300% since then as the options are currently trading north of $20.
We profiled 3D Systems in our Weekly Wrap last year when shares were in the $30’s. We should have made it a long-term core holding then as we love the company’s products and we said at the time 3D printing will be huge in the years to come.
There was a 3-for-2 stock split back in February when shares were in the $50’s so there could be another one coming. We plan to go over their numbers and do some more research to see if there is still value in the shares. If there is we could add the stock to our Weekly Wrap but in the meantime we will continue to look for option trades as well because shares can be volatile.
Speaking of which, there seems to be a little volatility in the market today as the bears are pushing red numbers. The damage isn’t too bad but Tuesday’s have been bullish of late so the close will be important today.
The Dow is down 40 points to 15,742 while the S&P 500 is lower by 5 points to 1,766. The Nasdaq is off 7 ticks to 3,912.
We have updated our current trades and we have a Profit Alert on a trade that is up 25%. Subscribers, hit the Members Area to lock-in profits and stay locked-and-loaded as we could have additional updates today.