A Turnaround And A Winner’s Return
Today’s two bullish trades pair a business-communications turnaround with a return to a former biotech winner. Both have improving price action, and we’re giving their business progress several months to translate into higher share prices.
The software idea came from our Market Watchers research. Its opportunity is practical: businesses using cloud communications and AI tools to handle customer interactions more efficiently. Renewed growth and debt reduction could give investors reasons to reassess the company.
The biotech comes from our former-winner watchlist. A fresh technical setup has brought it back into contention, supported by sales growth and an expanding commercial business. We’re looking for the next leg of that growth.
Time For The Thesis To Develop
We’re using different structures to finance that upside. In the software trade, selling puts offsets most of the call cost and commits us to owning shares if assigned. In the biotech trade, an earlier short call helps finance a longer-lived call, leaving time for another earnings cycle after the short leg expires.
We priced our options structures using three different models and are using limit orders to enter our trades slightly below their calculated fair values. .
Paid subscribers will find the names, full entry details and pre-set exit plans below.
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Today’s Former Winner Trade
Theme: Biotech royalties.
RSI: 53; Chartmill Technical Rating: 10; Setup Rating: 7; Fundamental Rating: 7.
