3D Systems Corporation (NYSE:DDD) reported its latest quarterly earnings this morning and Wall Street likes it. The popular 3D printing stock is on a veritable tear, vaulting as high as 7.9% on the day.
The bullish reaction couldn’t have come at a better time. DDD — and the broader 3D printing complex — was in much need of some type of positive catalyst after being beaten silly over the past year.
Though, to be fair, DDD was doing a commendable job at carving out a bottom before today’s announcement. Much work remains before DDD stock looks healthy again, but today definitely aided its recovery attempts.
What’s more, the earnings-induced pop provides a bit more confidence to those looking for continued neutral to mildly bullish behavior in 3D systems over the coming month.
One potential X-factor is the upcoming announcement in fellow 3D printing stock Stratasys, Ltd. (NASDAQ:SSYS). SSYS reports earnings March 2 and could further fuel the renewed strength in the industry or upset the good vibe set by DDD today.
Naked Puts for DDD Stock
The short put suggested in my last article on DDD treated us well so I’m inclined to return to the trenches with the same approach. Even if your skeptical of today’s pop in DDD, a short put play merely requires the stock not to fall much further in the next few weeks to profit.
Sell the Mar $29 put for 65 cents or better. The reward is limited to the initial 65-cent credit and will be captured provided DDD remains above $29 by March expiration.
By selling the put you obligate yourself to buy shares of DDD if it sits beneath $29 at expiration. If you’re not a fan of buying shares, simply buy back the put if it moves in the money prior to expiration.
At the time of this writing Tyler Craig had no positions on any of the aforementioned securities.
