$DDD prints big gains for bulls

Option traders tripled their money in 3D Systems today.

On June 4, Investitute’s market proprietary programs flagged the purchase of 2,100 November $11 calls for $2.35 to $2.70 with shares at $13.02. Open interest in the strike was a mere 58 contracts before the trades occurred, showing that this was fresh buying.

Those calls traded up to $7.70 today, more than 3 times their initial purchase price. The stock soared 43.47% in the same time period, a huge move but still far below that of its options on a relative basis.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

DDD spiked higher by 32.35% to $17.96 today. The 3D printing company beating earnings and revenue estimates after the market closed yesterday.