Should you do call options on SOUN today

**Given the current technical indicators and market conditions, call options on SoundHound AI (SOUN) today may not be advisable.** Here's a detailed analysis: 1. **Technical Indicators Suggest Caution**: - The stock's 5-day and 10-day moving averages are not available, but the closing price on July 30, 2024, was $4.97. This is below the resistance level of $5.14, indicating a bearish trend. - The MACD is -0.07, which could be interpreted as the stock being in a downward momentum. - The KDJ value of 21.18 is quite low, suggesting that the stock may be oversold. However, this could also imply that the stock has further room to fall before a potential rebound. |Ticker|Name|Closing Price|Date|code|market_code| |---|---|---|---|---|---| |SOUN.O|SoundHound AI|4.965|20240730|SOUN|185| |Ticker|Name|MACD|KDJ|RSI|Date|code|market_code| |---|---|---|---|---|---|---|---| |SOUN.O|SoundHound AI||21.1810|44.4778|20240729|SOUN|185| |SOUN.O|SoundHound AI|-0.0699|||20240730|SOUN|185| 2. **Analyst Ratings and Price Targets**: - Analysts have set an average 12-month price target of $6.88, with a high estimate of $9.50. This suggests a potential upside from the current price level. - However, the stock is currently trading at a premium to its 52-week high of $10.25, which could indicate a lack of confidence from investors. |Ticker|Name|Forecast Price|Date|code|market_code| |---|---|---|---|---|---| |SOUN.O|SoundHound AI||20240730|SOUN|185| |SOUN.O|SoundHound AI||20240731|SOUN|185| |SOUN.O|SoundHound AI||20240801|SOUN|185| |SOUN.O|SoundHound AI||20240802|SOUN|185| |SOUN.O|SoundHound AI||20240805|SOUN|185| 3. **Market Sentiment and Economic Factors**: - The recent GDP report indicating a strong 2.8% growth in the second quarter could be beneficial for growth-dependent stocks like SoundHound. - However, the stock's high growth dependency on macroeconomic factors could lead to volatility. 4. **Option Considerations**: - Given the current technical indicators and the fact that the stock is trading below its resistance level, call options may not be the optimal choice. - The high volatility and growth dependency suggest that options could be riskier than usual, especially for a stock with limited profitability and a negative net margin. In conclusion, while there is potential for upside based on analyst price targets, the current technical indicators and the stock's high growth dependency suggest that call options on SoundHound AI may not be advisable today. Investors should consider the stock's technical position, the uncertain macroeconomic environment, and the high analyst target prices before deciding on options.