Velo3D Soars 29% on Aerospace Breakthrough: Is This the Catalyst for a New Bull Run?

Summary
• Velo3D shares surged 29.4% intraday, hitting a 52-week high of $8.95 after Mears Machine delivered aerospace components using its Sapphire XC system.
• The stock traded 38.1% of its float, with turnover reaching 3.2 million shares, signaling strong institutional interest.
• CEO James Lloyd highlighted 'growth prospects exceeding current print capacity,' fueling investor optimism.

Velo3D’s explosive move reflects a perfect storm of strategic validation and sector momentum. The stock’s 29.4% surge—its largest intraday gain since 2023—was driven by Mears Machine’s successful delivery of Haynes 282 components, a critical milestone in additive manufacturing for aerospace. With the stock trading near its 52-week peak and a dynamic PE of -2.62, the question now is whether this is a sustainable breakout or a short-lived rally.

Aerospace Hardware Milestone Ignites Velo3D's Surge
Velo3D’s 29.4% intraday jump was catalyzed by Mears Machine Corporation’s delivery of aerospace gas turbine hardware using Velo3D’s Sapphire XC system. The components, including Haynes 282 and Inconel 718 parts, met stringent aerospace tolerances and were subjected to hot isostatic pressing—a process critical for high-speed rotating applications. CEO James Lloyd emphasized that Mears’ growth 'significantly exceeds existing print capacity,' validating Velo3D’s technology as a bottleneck solution. This partnership, combined with the U.S. Navy’s $6M contract for CuNi alloy qualification, positions Velo3D at the intersection of additive manufacturing and defense modernization, driving institutional buying.

Options Playbook: Leveraging Velo3D's Volatility with Strategic Contracts
• MACD: 0.305 (bullish divergence), RSI: 70.5 (overbought), Bollinger Bands: Price at 8.53 vs. upper band 6.60 (oversold rebound).
• 200-day average: 5.16 (price 8.53 is 65% above), RSI: 70.5 (overbought), K-line pattern: Short-term bullish trend.

Velo3D’s technicals suggest a continuation of its breakout, with key support at $6.90 (intraday low) and resistance at $8.95 (52-week high). The stock’s 70.5 RSI and 65% above 200-day average indicate overbought momentum, but institutional buying (38.1% turnover rate) suggests resilience. For options, the VELO20260116P7.5 put stands out: it offers a 1750% leverage ratio, 24.24% implied volatility, and a -0.019 delta, ideal for downside protection. A 5% upside scenario (targeting $8.95) would yield a put payoff of $1.45 per contract, assuming a $8.95 close. Aggressive bulls may consider this put as a hedge against near-term volatility, while long-term holders should monitor the $8.95 level for a potential breakout into new highs.

Backtest Velo3D Stock Performance
The backtest of VELO's performance after a 29% intraday increase from 2022 to now shows favorable results. The 30-day win rate is 86.49%, with a maximum return of 46.02% on day 56, indicating that VELO has a strong track record following the intraday surge.

Velo3D's Aerospace Breakthrough: A High-Volatility Play for Aggressive Traders
Velo3D’s 29.4% surge is a testament to its strategic positioning in additive manufacturing for aerospace and defense. With Mears Machine’s delivery validating its technology and the U.S. Navy’s CuNi contract reinforcing its defense footprint, the stock’s momentum appears durable. However, the 70.5 RSI and 65% above 200-day average signal caution for overbought conditions. Investors should watch the $8.95 52-week high as a critical inflection point—breaking above could trigger a re-rating. Meanwhile, sector leader Lockheed Martin (LMT) fell 0.32%, underscoring the need to differentiate Velo3D’s niche play from broader defense trends. For those seeking high-conviction exposure, the VELO20260116P7.5 put offers a leveraged bet on volatility, but only if the $8.95 level holds. Action: Buy the put for downside protection, or scale into longs on a $8.95 breakout.