Sound Hound (SOUN) 5/12/2025 $11.09

It was a heck of a day in the stock market today Dow Jones was up 11,160 points or 2.81% NASDAQ was up 779 or 4.35%.

                We did something today that we don't usually do. We sold calls at the money, we took $3,120.00 dollars and bought Sound Hound for $10.40. The market was extremely high at the opening bell.

Sound Hound was up around $10.50 (previous days close was $8.98), a share we put in a bid at $10.40 and we ended up buying the stock. As soon as we bought the stock we put in a sell for a call option at $10.50 a share expiring in four days (5/16/2025) for $0.70 a share That puts our share price at $9.70 but our stock would be taken away at $10.50 so if you take $3,120.00 dollars and divided that into $210.00 that gives you a return of 6.73% for four days. Now imagine if you could do that every four days that would give you a 350% return on your money.

                It really doesn't take a lot of money to do what we do. Now remember this is not always possible but it can happen. This stock trades options on a weekly basis, so in theory you could do it 52 times in a year. Just remember this is not a solicitation to buy or sell anything, this is just what our company is doing at the moment.

Now we could have put in a Call Buy Write which is executed at the same time. One commission, only reason we don't like to do that. It is because both are executed at the market, that means you are not getting the best price. Even though the stock price was higher than our bid, we bought it at $10.40 a share. Then we put in a sell for $0.70 a share on the call option, even though that call option at the time was trading at $0.35 a share. Our return on investment would have ended up half of what we got. We do on occasion miss an opportunity but that is very rare, and we usually get what price we're going for. We have been around long enough to know that there is always another opportunity.