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3M Co (NYSE:MMM) had a disappointing earnings announcement on July 25. The company beat its earnings expectations by $0.07 per share, but it missed its revenue expectations by $50 million. The company also left its earnings guidance for the full year unchanged. This lack of revenue growth — blamed by some analysts on 3M’s strategy to gain market share with price cuts — and lack of additional expected earnings growth seems to have sparked some profit taking on the stock.

We’re seeing confirmation of continued profit taking as MMM drops once again after rising to a new lower high in the aftermath of the company’s earnings announcement and expect the stock to drop back down to support around $200.

‘Buy to open’ the MMM October 200 Puts (MMM171020P00200000) for a maximum price of $3.45.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, 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 SlingShot Trader trade and get 1 free month today by clicking here.

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