EBIX Long Options Strategy
International SaaS and technology company Ebix offers software and e-commerce services to the insurance, financial, travel and healthcare industries. It recently announced that it closed 2022 with record volumes on AnnuityNet4 (AN4) --its annuity exchange platform that handles roughly 70% of the electronic annuity transactions in the industry, integrated with partners such as Cannex, DocuSign, OneSpan, DTCC. Other areas of business include CRM, Forex, and e-learning solutions.
Fundamentally, Ebix has a market cap of 623.2M and P/E of 9.47x -- with price targets from $43-150, averaging $97. TA-oriented investors may spy some consolidation into a falling wedge as well as some possible bullish momentum. But tech stocks in general are volatile in this market, and it's hard to tell if this small cap will chop or rally.
With this options strategy, capture up to 12% (20% annualized) of the potential gain while also allowing EBIX room to fall 63% before losing any of the initial investment.
Hedged like this:
Buy 1 $20 call
Sell 1 $22.5 call
Sell 3 $7.5 puts
Exp 9/15/23
Capital Requirement: $2239
Fundamentally, Ebix has a market cap of 623.2M and P/E of 9.47x -- with price targets from $43-150, averaging $97. TA-oriented investors may spy some consolidation into a falling wedge as well as some possible bullish momentum. But tech stocks in general are volatile in this market, and it's hard to tell if this small cap will chop or rally.
With this options strategy, capture up to 12% (20% annualized) of the potential gain while also allowing EBIX room to fall 63% before losing any of the initial investment.
Hedged like this:
Buy 1 $20 call
Sell 1 $22.5 call
Sell 3 $7.5 puts
Exp 9/15/23
Capital Requirement: $2239
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