NEW DIRECTIONAL PUT PLAYS
The ExOne Company - XONE - close: 45.26 change: -0.83
Stop Loss: 46.35
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on March 19th
New Positions: Yes, see below
Why We Like It:
XONE is in the industrial goods sector. The company is part of the 3D printing industry.
XONE has seen two of its rivals, DDD and SSYS, recently report earnings. DDD delivered results that were inline with estimates and DDD issued mixed guidance. SSYS beat bottom line estimates by a penny, beat the top line number, and reaffirmed its prior guidance. Both DDD and SSYS were upgraded by analysts after their earnings results. In spite of the upgrades both stocks are trending lower and not participating in the market's new highs.
XONE is not participating in the market's gains either. Shares of XONE have seen their oversold bounce from the January plummet lower stall in the $48 area. Now XONE is flirting with a breakdown below support near $45.00. If XONE does break lower it could retest its February lows near $38.00.
I do consider this an aggressive, higher-risk trade. The 3D printing stocks can be very volatile. Furthermore XONE has very high short interest. The most recent data listed short interest at 43% of the very, very small 7.9 million share float. That raises the risk of a short squeeze. Tonight's trade also has a short time frame. XONE is scheduled to report earnings on March 19th. We do not want to hold over the report. That gives us about two weeks.
I am suggesting small bearish put positions if XONE can trade at $44.40. If triggered our target is $40.25.
Trigger @ 44.40 *Small Positions - Aggressive Trade*
- Suggested Positions -
Buy the MAR $40 PUT (XONE1422o40) current ask $1.00
Entry on March -- at $---.--
Average Daily Volume = 444 thousand
Listed on March 05, 2014