Schaeffer's Expiration Week Countdown subscribers saw a massive return on their investment in less than a week, thanks to our SoundHound AI Inc (NASDAQ:SOUN) August 13.50-strike call recommendation. Now is a good time to unpack how this trade unfolded.
At the time of our recommendation on Aug. 10, the AI stock had just conquered its July highs and the $5 billion market cap level, closing at its highest level since February. Plus, investors were buzzing over Vision AI -- an advanced visual understanding engine, which is natively integrated with the company's its voice-first platform.
From a contrarian perspective, short interest was near all-time highs, despite the stock breaking out of a longer-term basing pattern. In fact, a whopping 33.3% of SOUN’s total available float was sold short.
We also recommended watching out for a post-earnings volatility crush on the heels of SoundHound AI's quarterly report. Sure enough, the shares followed up Friday's 26.4% surge with a 17.3% gain on Monday, and strung together four-straight daily wins before today's pullback. SOUND was last seen down 1.2% to trade at $16.30, but Schaeffer's subscribers collected a +309% profit after closing their positions in the previous session.
