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Protective Puts to Ride SpeculationOverview SoundHound AI ( NASDAQ:SOUN ) doesn't appear to be fundamentally sound, however, its technicals support a potential spike to around $15.50. While the rest of the market also appears to be nearing a peak, there may be a few more weeks of squeezing which is where SOUN may find a second, yet short-lived, wind. Fundamentals SoundHound AI has experienced significant negative income the last three years. There was an increase in cash flow which appears to be from the solicitation of its company's shares. The company has also downsized by 40% which it annotates in the 10-K Annual Report for 2023. Overall, my impression is that SoundHound is struggling to find its balance and is shrinking. I believe that the only reason it has surged as it much as it has is due to the market's overwhelming interest in artificial intelligence. Strategy Unfortunately it's not enough to be right about the health of a company especially when the rest of the market is chasing a high. Despite SOUN's lack of a healthy fundamentals, I would not be surprised to see a spike to the 1.618 Fibonacci level. This gives me the desire to utilize protective puts in case the market euphoria ends sooner than expected.
NASDAQ:SOUN
by Shepherd_Investor
SUPN - Collar for protectionBought SUPN at $5.65 as an investment, not a trade. In the past I have used collars to provide downside protection. Last collar expired last December. Collars should only be used in limited situation and timing them correctly is very important. It's only truly in hindsight that you can determine if the collar was a good decision. Last two collars worked out well. They cost me nothing and I didn't need to use them. I felt the urge to put a new collar in place. Look at the wedge patterns on the chart (2 past and possible current formation). Could be a potential move down. My limited order was executed. Sold a Sept $37 Call and bought the December $26 Put for .25 net credit. That's a pretty good credit especially considering SUPN would need more than 11% growth from current price for the Call to be in the money and expires 3 months before the Put protection. If SUPN grows 20% in the next few months, I won't be looking at this decision so favorably. Previous Collar - Expired in December 2016 Growth since last purchase
NASDAQ:SUPN
by JLJ002500