SoFi Call Volume Jumps as Stock Advances After $2 Billion Deal With Fortress
$SoFi Technologies (SOFI.US)$ call options volume jumped as stocks advanced after the provider of digital financial services announced a $2 billion agreement with Fortress Investment Group.
Shares gained more than 9% to $9.84 at 11:04 a.m. in New York Monday. Call options that give the holders the right to buy the stock at $10 attracted the heaviest volume of all options tied to Sofi as the share price rally moved the contracts closer to being in-the-money.
More than 112,000 of such calls changed hands so far across 16 expiration dates stretching through Jan. 15, 2027, according to exchange data tracked by moomoo. That's over one-third of the total volume, including put options.
Shares gained more than 9% to $9.84 at 11:04 a.m. in New York Monday. Call options that give the holders the right to buy the stock at $10 attracted the heaviest volume of all options tied to Sofi as the share price rally moved the contracts closer to being in-the-money.
More than 112,000 of such calls changed hands so far across 16 expiration dates stretching through Jan. 15, 2027, according to exchange data tracked by moomoo. That's over one-third of the total volume, including put options.
(To see Sofi's options chain, click here. For the US options market page, click here.)
Almost half of the $10 call options traded so far are in the contract expiring in four days. The price of that contract soared 800% as the stock traded less than 20 cents below that strike price. Volume jumped more than six-fold to 43,510 options from a day earlier.
Almost half of the $10 call options traded so far are in the contract expiring in four days. The price of that contract soared 800% as the stock traded less than 20 cents below that strike price. Volume jumped more than six-fold to 43,510 options from a day earlier.
"SoFi's $2 billion agreement to use Fortress Investment Group funds for loan originations can boost the fintech's referral revenue, while expanding its lending-platform business, which already includes partners such as Pagaya," Bloomberg Intelligence analysts wrote in a note Monday. "The pact extends origination capacity in a capital-efficient manner and SoFi could retain customers on its platform for cross-selling purposes."
Monday's rally took the stock's gains over the past year to 21%. Technical indicators tracked by moomoo are now flashing early warning signals, with 12 of the 15 gauges showing that the stock could now be overbought, and the trend may be turning bearish.
Only the moving average shows that the trend is relatively bullish, while the moving average convergence divergence and the Bollinger Bands are both neutral.
Amid the 9% rally, the stock is now trading above the 30-day and other longer-term moving averages. That shows to some who study charts that the stock is now in long alignment and the trend could be turning relatively bullish.
Share your thoughts on Sofi in the comments section below. And if you have a price forecast on the stock, please vote.
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Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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Bullish Law : it will hit 15 next month.
103677010 : noted
Coach Donnie : $SoFi Technologies (SOFI.US)$ SoFi Technologies announced a $2 billion deal with Fortress Capital to grow its personal loans business. SoFi CEO Anthony Noto said the business can help SoFI "diversify toward less
capital-intensive and more fee-based
sources of revenue.”
Shares of SoFi were up over 8% in early trading Monday following the news. https://www.investopedia.com $SoFi Technologies (SOFI.US)$ SoFi Stock Rises, Lifted by $2B Fortress Capital Loan Deal
$SoFi Technologies (SOFI.US)$ SoFi Partners with Venus Williams and Cameron Brink