EOT Trade Alert – September 14, 2009

| September 14, 2009

September 14, 2009

Trade Alert:

   Buy ININ Dec 2009 $20 Calls at $2.25 or better (NQXLD)

Company Background:

Interactive Intelligence (ININ) is a software company specializing in Unified Business Communications Solutions.  They’re a market leader in voice over internet protocol (VoIP) for business communications.  They provide software based phone systems to businesses in a variety of industries.

Short-Term Catalyst:

ININ’s success is based on their ability to innovate.  And their contact center application is a perfect example of what makes them successful.

Their platform is the future of communications.  It provides businesses with a simple all-in-one solution to manage voice and data communications.  Their software based system is cheaper than a traditional hardware based system.

Their ability to deliver cost reductions and increased productivity positions them to grow as the economy comes out of the recession.

The key to their growth is unified communications.  Their system packages telephone and internet networks into one system.  The technology is expanding the way businesses communicate.  They’re able to use e-mail, internet chat sessions, and web callback requests to improve communications with customers and partners.

Their market leadership has resulted in a growing product suite, customer base, and revenues.

Now their earnings per share are accelerating.  And, the stock price is moving higher by leaps and bounds.  They should be announcing earnings around the end of October. I’m expecting big things.

The recent price action paints a pretty technical picture.  The stock’s in a bullish uptrend.  It’s riding the 50-day moving average higher.  And should continue to do so regardless of how fast the economy recovers.

Trade Details:

Option Ticker Symbol: NQXLD
Underlying Stock Symbol: ININ
Current Bid-Ask Price: $1.80 – $2.15
Option “Buy Up To” Price: $2.25
Break-Even On Stock At Expiration: $22.25
Maximum Risk Per Contract: $225

Exit Strategy:

ININ is trading at $19.29 per share.  Resistance levels will be at $22.25 and again at $25.  Remember, we want this stock to move higher.  Support levels will be at $16.50 and $14.  Conservative investors should look to exit at the first support or resistance level.  Aggressive investors may want to hold for a bigger move.



Category: EOT Trade Alert

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