WHats the best 3D Printing stock to get in on now?

ACstudio

Active member
138 14
Buying any stock is a 50% probability of profit shot. DDD is beat down and has earnings Mon morning. SSYS just had earnings and is beat down. Maybe a good buy if you like to buy into weakness. For me the options market is too wide in any of those for a strategic play.

However HPQ has earnings coming up....the expected move should be around 2-3$. Selling a strangle at the expected move the day of the earnings in the nearest expiration might be worth it depending on how the volatility is. With around 70% probability of profit and a return on capital of about 3-4% if you buy it back at 50% max profit the next day.

Just buying HPQ right now would be buying at a high and it's just following the rest of the market anyway...but if you sell calls against it as a long term cost basis reduction strategy....you will reduce cost basis on the first month by .95 per share giving you around a 65% probability of profit and then prob around .70+ per share (on the monthly rolls at 7-10 days to expiration)....per month after that.
 
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ACstudio

Active member
138 14
So should i buy HP or not? LOL

That's like asking if you should have a steak for dinner or not.

If I wanted in on a long 3d play HPQ, for a longer term investment...is the only one I would consider. And if I decided to go long on HPQ I would do covered calls into perpetuity...or until the cows come home....or the chickens come home to roost or whatever.

I never just BUY anything. I always reduce cost basis by selling premium against it ...or just sell premium.

Owning HPQ has a Delta risk of 1....means if the stock goes up 1 you make 1...if the stock goes down 1 you lose 1. Selling the 1st out of the money call against it reduces you deltas by around .40. And you can roll that call every month or not...it's up to you.
 

Stoney_21

Member
61 1
im sorry i dont understand all this investing lingo. can you spell it out as simply as possible?

now im in the mood for a steak :)
 

ACstudio

Active member
138 14
Hard to invest in "probably". Saying there is about a 64% chance that it will be within 3$ either way was actionable. If the options were more liquid. But sayin probably doesn't have a number. Still sounds like 50/50 to me.

DDD up 1.48.......So a weekly expiration strangle from Fri at the expected move sold for 1.39 and you can buy it back right now for .67.......That's why real probability trumps "probably".
 
 
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