3D Systems (DDD) is a leader in the increasingly popular 3D printing market that we believe is only going to get bigger and bigger. Early adopters of 3D printing are rabid fans, and with declining printer costs and the inclusion of 3D printing APIs in products like Windows 8.1, we are confident more and more people are going to make the leap into the 3D printing world.
DDD is a solid technology growth stock. The company uses 3D printing to produce everything from plastic and metal parts for developer prototypes to dental models and hearing aids, and the number of products you can produce via 3D printing continues to grow. We expect the company will have solid numbers when it reports earnings on Tuesday, July 30, before the market opens, which should give the stock the boost it needs to break through resistance at $50.
One other point that has us excited for these calls is the relatively heavy short interest levels in DDD. Short sellers are taking a bearish bet on the stock that we believe is going to backfire. And when it does, these short sellers will be forced to cover their shorts — sparking a short squeeze that should make DDD’s jump above $50 all the easier.
‘Buy to open’ the DDD August 16th expiration 50 Calls (DDD130817C00050000) for a maximum price of $1.95.
NOTE: Make sure you don’t accidentally buy the weekly options for DDD. Buy the August 16 options (which technically expire on August 17).
InvestorPlace advisors John Jagerson and S. Wade Hansen are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next trade and get 1 free month today by clicking here.