SoFi Technologies (SOFI) - Short-Term Option Strategy
Overview
$SoFi Technologies(SOFI.US$ has demonstrated strong financial performance and user growth in 2024. The company reported net revenue of $645 million and a net income of $88 million for Q1 2024, marking its second consecutive quarter of GAAP profitability. Additionally, SoFi saw a substantial increase in its member base and product offerings, with total members exceeding 8.1 million and total products reaching over 11.8 million by the end of Q1.
$SoFi Technologies(SOFI.US$ has demonstrated strong financial performance and user growth in 2024. The company reported net revenue of $645 million and a net income of $88 million for Q1 2024, marking its second consecutive quarter of GAAP profitability. Additionally, SoFi saw a substantial increase in its member base and product offerings, with total members exceeding 8.1 million and total products reaching over 11.8 million by the end of Q1.
Recent Trends
Despite these positive developments, SoFi's stock has faced a decline of over 25% since the start of 2024, reflecting market volatility and investor caution. However, analysts have mixed views on the stock, with some predicting a price target as high as $14. The upcoming earnings report on July 29 is expected to be a significant event, potentially causing substantial price movements.
Despite these positive developments, SoFi's stock has faced a decline of over 25% since the start of 2024, reflecting market volatility and investor caution. However, analysts have mixed views on the stock, with some predicting a price target as high as $14. The upcoming earnings report on July 29 is expected to be a significant event, potentially causing substantial price movements.
Option Strategy
Given the elevated implied volatility (IV) ahead of the earnings report and the potential for significant price swings post-earnings, a conservative approach would be to sell an option that expires before the earnings date. This strategy helps avoid the increased volatility and the risk of an implied volatility crush following the earnings announcement.
Given the elevated implied volatility (IV) ahead of the earnings report and the potential for significant price swings post-earnings, a conservative approach would be to sell an option that expires before the earnings date. This strategy helps avoid the increased volatility and the risk of an implied volatility crush following the earnings announcement.
Recommendation
I recommend selling a SoFi Technologies 6 put option expiring on July 26 (31 days). This strategy leverages the current premium (12-15%) due to higher IV while avoiding the earnings report on July 29, thereby minimizing exposure to unexpected volatility.
I recommend selling a SoFi Technologies 6 put option expiring on July 26 (31 days). This strategy leverages the current premium (12-15%) due to higher IV while avoiding the earnings report on July 29, thereby minimizing exposure to unexpected volatility.
Disclaimer
This is not financial advice. Please do your own research and consider your risk tolerance before making any investment decisions. I followed this strategy by selling the same 7/26 option.
This is not financial advice. Please do your own research and consider your risk tolerance before making any investment decisions. I followed this strategy by selling the same 7/26 option.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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EZ_money : hell no buy that put and get burned
Kopikarp OP EZ_money : cat cuter
Kopikarp OP EZ_money :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Thy GoD : how did you make the green text?
Kopikarp OP Thy GoD : formatting option in the moomoo post editor