Friday, February 15, 2013

3D Systems (DDD) - Vol Breaches All-time High; Still 10 Days Before Earnings

DDD is trading $59.42, down 5.3% with IV30™ up 2.1%. The LIVEVOL® Pro Summary is below.


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3D Systems Corporation (3D Systems) is a holding company that operates through subsidiaries in the United States, Europe and the Asia-Pacific region. The Company is a provider of three-dimensional (3D) content-to-print solutions including 3D printers, print materials and on-demand custom parts services for professionals and consumers.

This is one of the most fascinating technologies I have ever seen -- for the curious, please do read up about this -- it is mind blowing.

This is a vol note, specifically an elevated vol note where the options are breaching all-time highs in IV30™. Let's start with the one-year Charts Tab, below. The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue vs HV180™ - pink).

On the stock side we can see the impressive rise over the last year, with a bit of a hiccup over the last month. But, still, the stock was trading $20.38 a year ago, and is now ~$60. But this is an elevated vol note, what vol we have... let's turn to the two-year (almost) IV30™ chart, below.

We can see the explosive rise on vol in a very short time period. On 1-18-2013 the implied was trading at 49.06%. Today it's over 82%. Earnings are due out 2-25-2012, but the vol push over the last month is not entirely due to earnings (if at all).

Finally, let's tun to the Options Tab.

We can see that Mar vol is priced to 83.05% while May is just 66.83%. That diff is in large part due to earnings. Keep in mind that as of Monday, DDD will have Apr options. There is a similar picture seen with SSYS -- a similar (but not too similar) company. Vol exploding and the stock dipping as earnings approach. The vol rise in DDD however has pushed it's implied to an all-time high. This is going to e a fascinating earnings cycle.

NB: There is a 3:2 stock split coming soon as far as I know.

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