After a dizzying week of ups and downs, the market is finding weakness at double top. Failure could send it down badly, which is why we hold the DIA November 169 put. At some point, the Dow needs to correct.
Hold that and all other open positions. We see no reason to exit anything.
As for new trades, 3D Systems (DDD) looks interesting again at solid support. The last time we played DDD, here’s how we did.
• DDD March 2014 60 calls returned 23% and 125%
• DDD May 2014 70 calls returned 19% and 64%
• DDD March 2014 70 calls returned 52% and 143%
• DDD March 2014 75 calls returned 101% and 33%
• DDD March 2014 70 puts returned 36%
• DDD March 2014 73 puts returned 62%
That’s pretty good.
Those were all picked up between January 2014 and February 2014.
Finding solid support at current prices, we’re recommending that you buy to open the DDD January 2015 55 calls up to $3.40. We’re playing this one a bit aggressively, believing we really do well here.
As always, do not risk the house. Risk up to your personal comfort level. For example, if you can’t afford to lose $5,000 worse case scenario, cut it in half. If you can’t afford to lose $2,500, cut it in half. We have to trade like that until the overall market corrects from double top resistance.