Dear Reader, Cerence recently announced that Dongfeng Motor, one of the largest automakers in China [afdaf3fd61bec5de782f6956499cf967c4d37d87][5ba6df09f6dbcb9ba8424d0bb0adfdd894b90fc3]
An Earnings Beat Sets Up a Trading Opportunity
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[Options Profits Daily]
This Chinese Auto Trade Risks About $165 for a Potential Gain of 103%
Cerence recently announced that Dongfeng Motor, one of the largest automakers in China, has selected connected car and automotive assistant products from Cerence and PATEO CONNECT+, [a leading connected car company]( in Asia, for its next-generation Aeolus AX7.
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To build an intuitive, conversational assistant experience, Dongfeng chose Cerence ARK (AI Reference Kit), a turnkey automotive assistant, to quickly develop, deploy and manage a fully localized automotive voice assistant that will be integrated into a head unit designed and built by PATEO.
With ARK, Cerence combined its state-of-the-art, AI-powered voice assistant features, including wake-up word, speech recognition, speech signal enhancement, natural language understanding, and text to speech, to deliver a responsive, fast and highly intelligent assistant that serves as the digital centerpiece of the Aeolus AX7.
This exciting news could be the beginning of a new up trend in this stock. However, there are reasons to consider risk and we have a strategy that does that.
As we explain [in our latest article,]( there are strategies that can benefit from news while considering risks of a reversal.
In the article, we explain in detail, one such [options strategy.](
This strategy is one that is focused on risk and is able to limit the risk to a precise level in dollar terms. In this trade, which we explain in detail, the risk is limited to $165 based on recent market prices.
Despite that focus on minimizing the potential risk of the trade, the strategy is still capable of delivering [large short-term returns.]( We show how to find the exact amount of risk is in dollar terms and we also detail the potential gains of the trade which is about 103%, based on actual recent market data.
You can find all of the details of the strategy and the specific trade in our latest free educational article that is [available right here..](
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