Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Hey Doug,

What does this mean in english...

The Motley Fool owns shares of 3D Systems and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems.

...DDD feels expensive to me with a near $3B marketcap ($31 pps), but it is a growth stock, so who knows:

http://stockcharts.com/h-sc/ui?s=DDD&p=D&b=5&g=0...

Is the Fools option position downside protection thru Jan 2014 given the underlying Long position? A means to pocket some premium (return) while waiting for the next leg up next year? Ultimately bullish?

Or is it an attempt to increase the current Long position at anytime between now and Jan 2014 in expectation of a bullish rally in the short-term?

Or is it a more complicated options stance that can benefit either way? Or maintain neutrality?

One of these days this will be my second language, but for now, reading "Short" w/Call or "Short" w/Put positions still confuses me. And together, forget about it (Lol)


Tye, aka SM2K
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement