At Orlando’s voice-recognition software conference last fall, Nuance held an event where a man who had won text messaging competitions was pitted against voice recognition software from Nuance Communications (NUAN).
Audio Podcast:
An audio podcast of this article is available at: poweropt.com/podcasts/2007_02_09_NUAN.mp3
The phrase was, “The razor-toothed piranhas of the genera Serrasalmus and Pygocentrus are the most ferocious freshwater fish in the world. In reality they seldom attack a human.” Although the competitive text-messager clocked 48 seconds, the man dictating to the Nuance software returned a humbling 16 seconds.
Many tout the greatness of voice recognition software, but when I said the aforementioned phrase into my copy of Dragon NaturallySpeaking 9, I received the following output, “So research Piranhas of such an era Sea aerosol must end I go centers are the most ferocious freshwater fish in the world. In reality they seldom attack a human.” Needless to say, they still have some bugs to work out.
Nuance reports increased processing power, new software algorithms, and better microphones have increased the output of such programs to a near 100 percent accuracy rate.
More importantly, the market for voice-recognition technology was over $1 billion for the first time in 2006; equating to a 100 percent increase in just two years. The market is expected to quadruple in the next three years. The growth is expected in new features added to “talking electronic” devices like phones and car navigational and music systems. Experts say it is likely voice-recognition systems will be inserted into a myriad of gadgets, appliances and machines.
Competitors:
Competitors for NUAN include: Adobe Systems Inc. (ADBE), AT&T Inc. (T), Fonix Corp. (FNIX.OB), and Ninetowns Digital World Trade Hlds. Ltd. (NINE).
Potential Trades:
All of the following option trades have 36 days until expiration. Nuance Communications is currently trading at $13.94. These trades were discovered using the powerful suite of option search tools found at PowerOptions.
| Covered Call – Nuance Comms. (NUAN) $ 13.94 (36) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPTION | Strike Info |
Opt Bid |
% Dnsd. Prot. |
% If Unch. |
% If Asgnd |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SSQCV | 07 MAR 12.50 | $1.70 | 12.20% | 2.10% | 2.10% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bull-Call Debit Spread — Nuance Comms. (NUAN) $ 13.94 (36) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sell Opt |
Strike Info |
Bid Price |
Buy Option |
Strike Info |
Ask Price |
% Return |
Break Even |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SSQCV | 07 MAR $12.50 | $1.70 | SSQCB | 07 MAR $10.00 | $4.10 | 4.20% | $12.40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The covered call trade, an in the money covered call, offers 12.2% downside protection and a potential profit of 2.1% if the stock remains unchanged or rises. The net cost of this trade, per 100 options, is $1,224.00.
The second trade is a bull call debit spread. This trade offers 4.2% potential profit if the stock remains above $12.50. If the stock decreases below the break-even price of $12.40, the investment begins to lose money. If the stock price goes below the lower strike price of $10.00, the entire investment is lost. The net cost of this trade, per 100 options, is $240.00.
For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions‘ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.
PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the covered call investment strategy.
PowerOptions‘ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, naked puts and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.
[tags]Orlando, ADBE, Adobe Systems Inc., NINE, Ninetowns Digital World Trade Hlds. Ltd., NUAN, Nuance Comms., T, AT&T Corp., covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options[/tags]