3D Systems Corporation (DDD - Get Report) reported disappointing results from its fourth quarter, sending shares lower. However, 3D printing stocks as a whole have been on a hot streak lately. So what should investors who want exposure to 3D printing stocks with less risk do? Stock Options Channel highlights via NASDAQ a couple of new options trades which are now available.
The new options which started trading today are April 25 contracts.
3D Systems on a put contract
The site suggests that the put contract for 3D Systems Corporation (DDD - Get Report) with a $68 strike price might be a possibility for some investors. Its current bid is $4, and investors who sell to open that put contract will commit to buying it at $68 and collect the premium, which puts the cost basis, before commissions, at $64. Investors who have already been thinking of getting into 3D Systems may be particularly interested in this contract.
The $68 strike is a 2% discount to the current trading price, and the put contract could expire worthless. According to Stock Options Channel, the current odds of this happening are at 57%. If the contract does expire worthless, then the premium would be a 5.88% return on the cash commitment, or a 42.98% annualized return.