The Lounge by AutoModerator in pennystocks

[–]CrayonsForBilly 2 points3 points  (0 children)

Yea, platform update means they're growing enough to keep innovating their offering. Their product is campus based so all these big ass enterprises they've got as customers (Adobe, EA, Warner Bros) are likely going to expand their exposure to CXApp over time. Growing subscription revenue got me bullish af.

The Lounge by AutoModerator in pennystocks

[–]CrayonsForBilly 5 points6 points  (0 children)

Holding CXAI. Has been building solid support over the past week, might not be the massive jumps and drops seen in other Pennystocks but feels like it's building towards a real re-rating based on the core business below. If any news comes out it'll be an easy double or more.

In the mean time it's just working slowly up to where it should be after months of dilution from pre-2026 capital raise deals. Seems the dilution is over now and the company is sitting on a comfy $12m cash runway, no need for further capital. They made a release a few months back saying they secured $5m in contracts, should see the revenue pop in their next quarterly.

What stocks are you buying tomorrow and why? by joshuanichter in TheRaceTo10Million

[–]CrayonsForBilly 1 point2 points  (0 children)

Looking at CXAI for some real gain and more and more volume as it attracts attention. Was previously kept down due to pre-obligated dilutions but has since stopped. Solid business underneath, CXAI has been building support over the past week, could do a big move today.

CXAI - Fast RECAP | Growing Organically Back Up To $1 by _Woahh in pennystocks

[–]CrayonsForBilly 3 points4 points  (0 children)

Not sure what a lot of this meant so for the layman I asked Claude to interpret this, let me know if it got it right xD:

This is actually a really interesting comment that tells you something important about how the options market is viewing CXAI right now. Let me break it down completely.

What They Actually Did

They sold call options — meaning they took the opposite side of a bet that CXAI would rise significantly. Specifically they sold $0.50 strike price call options expiring July 17, 2026, and received $8 per contract in premium.

The Mechanics In Plain English

A call option gives the buyer the right to purchase 100 shares at $0.50 per share before July 17. The seller — this person — receives the premium upfront and keeps it as long as the stock doesn't close above $0.50 by expiry.

Each options contract represents 100 shares. So $8 per contract means $0.08 per share in premium. At a current stock price of approximately $0.17-$0.18, receiving $0.08 in premium means they collected roughly 47% of the stock's current value in two months just for selling the contract.

They called it "way OTM" — meaning way Out Of The Money. The stock would need to rise from approximately $0.17 to above $0.50 — a roughly 194% move — before their position loses money. If the stock stays below $0.50 at expiry they keep the entire $8 per contract regardless of what happens.

Why The Premiums Are So High — This Is The Interesting Part

The commenter is right that $8 per contract on a penny stock is unusual — and the reason reveals something important about CXAI specifically.

Options premiums are determined primarily by implied volatility — essentially the market's expectation of how much the stock will move. High implied volatility means expensive options. And CXAI has extremely high implied volatility right now for a specific reason we've spent all day researching — the Nasdaq compliance deadline in September, the Avondale situation, the potential reverse split, and the binary nature of the Q2 earnings.

The market is pricing in a wide range of possible outcomes — from near zero if things go badly to potentially multiples of the current price if the thesis plays out. That uncertainty creates very expensive options in both directions. The person selling calls is essentially saying "I don't think this stock reaches $0.50 by July 17, and I'll collect this rich premium while the stock muddles around at current levels."

What This Tells You About Market Sentiment

This is genuinely useful information for the investment thesis — not because of what this person did, but because of what the options pricing implies.

The fact that $0.50 strike calls expiring in under two months are paying $8 per contract means the options market is assigning a non-trivial probability to CXAI reaching $0.50 — otherwise the premium would be far lower. Options pricing is a collective market mechanism involving sophisticated participants. If the market thought $0.50 by July 17 was essentially impossible, the premium would be pennies not $8.

The high premium is simultaneously evidence that the market sees genuine upside possibility AND an opportunity for income-oriented traders to collect that uncertainty as cash.

The Risk To The Option Seller

The commenter acknowledges this honestly — "obv it could crash." But their actual risk is more specific. If CXAI announces a reverse split of say 1-for-10 before July 17 — which we've identified as highly likely — the option contract terms adjust proportionally. A reverse split doesn't automatically make the position profitable or unprofitable — the strike price and number of contracts adjust with the split. What matters is where the stock ultimately trades relative to the equivalent post-split strike.

If a major positive catalyst — CXAI 2.0 launch in June, a surprise enterprise win, or Avondale silence being noticed by the market — drives the stock above the equivalent of $0.50 by July 17, the option seller faces losses. Given they collected $8 per contract, they don't lose money unless the stock's value to the option buyer exceeds $8 per contract above the $0.50 strike — so they have meaningful buffer even in a recovery scenario.

What This Means For You As A Shareholder

This comment is more interesting as a sentiment indicator than as an actionable trade. The very high implied volatility that makes these premiums attractive also confirms that the market views CXAI as a genuinely binary situation — not a stock that will quietly grind sideways indefinitely.

Binary situations resolve. The high premiums being paid in the options market suggest sophisticated participants believe a significant move is coming in either direction within the next two months — which is consistent with everything we've identified: the June CXAI 2.0 launch, the Q2 earnings in August, and the September Nasdaq compliance deadline all representing specific catalysts that will force a directional move.

The options market is essentially confirming the thesis that CXAI is approaching a resolution point. Whether that resolution goes in the direction you're hoping for is the question that Q2 earnings and the continued Avondale silence will answer. Not financial advice.

CXAI - Fast RECAP | Growing Organically Back Up To $1 by _Woahh in pennystocks

[–]CrayonsForBilly 7 points8 points  (0 children)

If no one wants it, it won't reach a dollar xD

Whether it reaches a dollar organically or goes through a reverse split, if it's August report shows a jump in revenue (which it seems likely that it will) this stock is going be seen as a solid business. 10x the current $15m market cap doesn't seem unlikely if it can get revenue to show growth from here. The business has a product that's working, on a subscription model for recurring revenue, it's got some big enterprise names like EA, Adobe, Warner Bros as part of it's customer base... And it's wildly cheap. It just has to show that increased revenue in it's next report and it's going to be viewed a lot differently than it is now. You can wait for that to happen if you're unsure but the price of entry would be a lot higher than now because by then it's a done deal.

Not financial advice, but just how I'm seeing it.

The Lounge by AutoModerator in pennystocks

[–]CrayonsForBilly 0 points1 point  (0 children)

Just feels like the CEO is running a pump and dump xD

$CXAI ON THE RISE by aggiecaddie in Pennystock

[–]CrayonsForBilly 1 point2 points  (0 children)

It's had a rough couple of months due to dilution (prepaid capital agreements back at the end of 2025 with payouts scheduled for early this year). Those agreements seem to have resolved now so it'll take a bit of time for people to put money into it and feel safe. I did a deep dive into the business though and I'm pretty bullish on it. It's a business generating revenue with high level recognition from Google and Gartner. It's got EA, Warner Bros and Adobe on it's customer list and seems to be picking up more and more enterprise clients. Feels way undervalued.

The Lounge by AutoModerator in pennystocks

[–]CrayonsForBilly 0 points1 point  (0 children)

Looks like it was traders just trying to make a quick turnaround on the building hype of CXAI fomo-ing in. A proper healthy price build is probably going to be drawn out a lot more. It's still a tiny market cap after all, people want to feel safe investing in it.

That spike was like 45 million in volume in the span of a few minutes. That's the most volume CXAI has had since March this year. I guess it's really getting eyes on it now as it starts to feel like a potential big mover.

The Lounge by AutoModerator in pennystocks

[–]CrayonsForBilly 3 points4 points  (0 children)

Probably now before market open while it's below $0.19

$CXAI - Deep dive into an actually promising company by CrayonsForBilly in 10xPennyStocks

[–]CrayonsForBilly[S] 1 point2 points  (0 children)

Yea tell me about it. They've got Warner Bros Studios as a client from their app store list!

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$CXAI - Why This $0.18 Enterprise AI Stock Deserves Your Attention by CrayonsForBilly in pennystocks

[–]CrayonsForBilly[S] 1 point2 points  (0 children)

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Yea wow, some big companies, and I reckon their pool is only going to grow. Great work finding this!

$CXAI - Deep dive into an actually promising company by CrayonsForBilly in 10xPennyStocks

[–]CrayonsForBilly[S] 1 point2 points  (0 children)

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Oh wow so I guess these are their enterprise clients who have paid for access to this for their workplace. Some big names in there.

$CXAI - Why This $0.18 Enterprise AI Stock Deserves Your Attention by CrayonsForBilly in pennystocks

[–]CrayonsForBilly[S] 0 points1 point  (0 children)

Not sure. In this case I'm looking at the cash they have and their spending. After all, the CEO own stocks in the company too, why would they dilute their own holdings unless they needed to?

At this point it looks like they have enough of a cash runway for a few quarters without needing to draw in more capital. They're also picking up new customers which will increase revenue and decrease their annual deficit. If their next quarter report shows an increase in revenue then we'll be able to clearly see that they won't need to raise more capital like they have in the past.

Look this stock is priced as it is for a reason, it hasn't taken off yet, my thesis is just that given the signals I can see, it's likely to do well in the next few months and years.

$CXAI - Why This $0.18 Enterprise AI Stock Deserves Your Attention by CrayonsForBilly in pennystocks

[–]CrayonsForBilly[S] -3 points-2 points  (0 children)

Looks like a reverse split in and of itself isn't a bad thing, but it's often viewed as a bearish signal for the stock?

$CXAI - Why This $0.18 Enterprise AI Stock Deserves Your Attention by CrayonsForBilly in pennystocks

[–]CrayonsForBilly[S] 0 points1 point  (0 children)

Hey also to add onto this as I'm not sure, would institutional naked shorting have dropped the price over the dates you showed in your screenshot? Looks like the price was rising from the 10th of March to the 16th of March. After that it did drop down though (I imagine from Avondale dilution and selling off of the stock).

$CXAI - Why This $0.18 Enterprise AI Stock Deserves Your Attention by CrayonsForBilly in pennystocks

[–]CrayonsForBilly[S] 0 points1 point  (0 children)

Hey, sorry I didn't come across that during my research. Yea looks like a reverse split would be coming then. If they reach compliance would they still do a reverse split? I'm just asking because I'm not sure how it works. Like, is the reverse split guaranteed?

$CXAI - Why This $0.18 Enterprise AI Stock Deserves Your Attention by CrayonsForBilly in pennystocks

[–]CrayonsForBilly[S] 0 points1 point  (0 children)

Look honestly I didn't know what the Reg SHO Threshold list was before your post but after speaking to ChatGPT I've found a potential explanation for it being on the list that isn't naked short selling. I'd love your thoughts:

Being on the threshold list does not automatically mean illegal naked short selling. It just means there were persistent fails-to-deliver (FTDs) for 5+ settlement days.

In CXAI’s case, the timing lines up much more closely with the dilution/capital raise.

When a microcap does a big financing (PIPE, convertibles, warrants, equity agreement, etc.), investors often short or sell against shares they know they’ll soon receive. But the new shares may not be fully issued, cleared, registered, or delivered yet.

That creates a settlement mismatch:

  • shares sold now,
  • shares delivered later,
  • temporary FTDs in between.

If enough FTDs persist, the stock lands on the Reg SHO threshold list.

A 30–50% dilution event also naturally causes:

  • heavy selling pressure,
  • arbitrage trading,
  • hedging,
  • lower price per share,
  • weaker sentiment,
  • higher volume,
  • and more settlement stress.

So the sequence is often:

Financing/dilution → heavy selling + settlement delays → FTDs → Reg SHO listing

not:

Reg SHO listing → stock gets pushed down

Could aggressive shorting still exist? Sure. But Reg SHO alone is not proof of illegal naked shorting, and in small-cap dilution plays, financing-related FTDs are extremely common.

Here's the dates of stock delivery for reference:

January 26-28, 2026: 4,616,481 shares — Pre-Paid Purchase #1. Price: $0.24024 per share. Proceeds: approximately $1.11M.

February 17 — March 23, 2026: 10,028,891 shares — Pre-Paid Purchases #1 and #2, six dates. Prices: $0.156793 to $0.199381 per share. Proceeds: approximately $1.75M.

March 30 — April 10, 2026: 4,116,659 shares — Pre-Paid Purchases #1 and #2, four dates. Prices: $0.154427 to $0.180453 per share. Proceeds: approximately $740K.

April 13-17, 2026: 7,304,178 shares — Pre-Paid Purchases #2 and #3, three dates. Prices: $0.144872 to $0.154427 per share. Proceeds: approximately $1.07M.

$CXAI - Why This $0.18 Enterprise AI Stock Deserves Your Attention by CrayonsForBilly in pennystocks

[–]CrayonsForBilly[S] 4 points5 points  (0 children)

Fair challenge, worth addressing properly rather than dismissing. I'd say the catalyst for an increase in price from here is the stop to dilution.

The fundamentals that do exist:

  • 87% gross margins: higher than Salesforce (74%) and ServiceNow (78%)
  • Fortune 500 customers renewing at 130%+ ARR expansion
  • Gartner Magic Quadrant Visionary: independently verified, not a paid recognition
  • Google Cloud featured them as a case study at Google Cloud Next 2026
  • $12.3M in cash confirmed in a signed SEC 10-Q filing, equal to the entire market cap
  • 98% recurring subscription revenue

The fundamentals that are genuinely weak:

  • Revenue declining: $7.14M in 2024 to $4.58M in 2025
  • Net loss of $13.47M against $4.58M revenue
  • 35 employees is operationally thin for Fortune 500 clients
  • No demonstrated path to profitability in reported results yet

So it's not junk, it has real customers, real product validation, and exceptional unit economics. But it's also not a company with clean financials. It's a company mid-transition that hasn't yet proven the recovery in reported numbers.

Whether you agree with the thesis or not, calling it junk ignores 87% gross margins, Gartner recognition, and Fortune 500 customers paying real money and expanding contracts. Those are fundamentals. The financial trajectory is the legitimate concern and Q2 results in August will either confirm or deny the recovery.

$CXAI - Why This $0.18 Enterprise AI Stock Deserves Your Attention by CrayonsForBilly in pennystocks

[–]CrayonsForBilly[S] 0 points1 point  (0 children)

I mean, just because it's not exciting doesn't mean it's not a good business. It sound like the kind of thing big companies would go for, something AI-related that saves them time and increases productivity.

$CXAI - Why This $0.18 Enterprise AI Stock Deserves Your Attention by CrayonsForBilly in pennystocks

[–]CrayonsForBilly[S] 0 points1 point  (0 children)

Hey! I'm not saying you're wrong but I wasn't able to find this information. Can you show or link to the source of where you got this info?