Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Remember when I called Nuance Communications Nasdaq: NUAN a buy just last week? I followed those words up with an outperform Communications at the time, but I recently took it a step further by adding a position to my personal portfolio. I already went over the reasons that I think it will be a long-term winner in the coming years, with the belief that voice-recognition technology now has the greatest potential for mainstream usage, especially when you factor in its mobile prospects, thanks in part to its role powering Apple 's Nasdaq: AAPL Siri, along with TV's shift to voice technology. It's not as expensive as you think One of the more disconcerting aspects of the stock is its nosebleed price-to-earnings ratio of roughly Much of this sky-high multiple is related to the intricacies of acquisition accounting, which is particularly relevant for Nuance since it's an acquisition machine. The company is constantly amortizing intangibles, which puts a drag on reported earnings. Looking at cash flow brings it back stock to earth. SEC filings for historical data, Reuters for revenue consensus estimates. Some of its other multiples look far more reasonable. Price-to-sales sits at 6. Those are still somewhat lofty, but suddenly the stock doesn't look nearly as expensive as price-to-earnings alone would have you believe. Fair warning I'm using a relatively complex options strategy that isn't for the faint of heart, so keep this in mind as you read further. I'll start with nuance brief overview of two of the "Greeks" that I used to put together my position, namely delta and theta. Delta is a measure of how the option price will react to changes in the underlying stock, and ranges between 0 and 1. A delta of 0. You can also think of it as owning an equivalent number of shares. If you owned one call option representing shares with a 0. Delta changes options the stock price changes, stock it's not a static figure. Theta is a measure of time decay, or how quickly the option loses time value. It measures how much value the option will lose each day, all nuance equal. Time decay isn't a linear affair, and accelerates near the end of an options life, so an option with three months to live decays faster than one with two years, for example. On with the trade I implemented a position that's analogous to a synthetic long: I sold a two-month bullish put spread while simultaneously purchasing a long-term call. With a total net delta of 1. This position carries a net positive theta of 0. Time is a good ally to have, since I lose every time I try to fight it. If you can't beat 'em, join 'em. The company is one of a few players that will communications power the mobile devices of the future, and it also has exposure to the explosive growth in China. Fool contributor Evan Niu's previous experience as a senior trading specialist at Charles Schwab helped him set up this position, which is now in his personal portfolio. He owns shares of Nuance Communications and Apple, but he holds no communications position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Nuance Communications and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all options that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is stock CFA charterholder. Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services. Stock Advisor Flagship service. Rule Breakers High-growth stocks. Income Investor Dividend stocks. Hidden Gems Small-cap stocks. Inside Value Undervalued stocks. Learn How to Invest. Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Nuance Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards. 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Technology Stock That May be Oversold! (NUAN)
Technology Stock That May be Oversold! (NUAN)
5 thoughts on “Nuance communications stock options”
Catalogue of the works exhibited at the time of the Sophia Grey Memorial Lecture given by Revel Fox in Bloemfontein in August 1997 and at the South African National Gallery in Cape Town in 1998.
The sexually transmitted infectious agent— Treponema pallidum —first caused symptoms in reproductive organs and then, sometimes years later, migrated to the brain where it led to neurosyphilis.
And, there has been no change according to the statistical distributions that fit the data.
Catalogue of the works exhibited at the time of the Sophia Grey Memorial Lecture given by Revel Fox in Bloemfontein in August 1997 and at the South African National Gallery in Cape Town in 1998.
The sexually transmitted infectious agent— Treponema pallidum —first caused symptoms in reproductive organs and then, sometimes years later, migrated to the brain where it led to neurosyphilis.
A review of the recent international case law indicates that many tribunals have failed to.
For an overview of the entire ETD creation and submission process, please see these guidelines from the Graduate School.