Buy Call SOFI

December 20, 2024
Boom or Bust Trade: Buy the Sofi Technologies (SOFI) July 16 Calls (exp. 7/18/2025) for $3.75 or less.

As I’ve written twice this week, option activity in SOFI has ramped up in a big way, including these trades:

Buyer of 4,200 Sofi (SOFI) September 25 Calls for $1.64 – Stock at 15.25

Buyer of 8,000 Sofi (SOFI) January 16 Calls for $0.90 – Stock at 15

Buyer of 10,500 Sofi (SOFI) February 22 Calls for $0.88 – Stock at 16.65

Buyer of 3,500 Sofi (SOFI) February 22 Calls for $0.84 – Stock at 16.80.

This is just a small sample of the call buying, which has been across all expiration cycles, and all strike prices. Essentially, traders want bullish exposure to SOFI with calls.

Let’s get involved with SOFI via a July 16 call buy today, though there are risks (noted below).

To execute this trade you need to:

Buy to Open the SOFI July 16 Calls

The most you can lose on this trade is the premium paid, or $375 per call purchased.

The risks I see in this trade are pretty straightforward …

The market is suspect following a nasty couple days of trading, and for all we know this is just the start of a larger market decline.

And should the market continue to get hit, a highflyer like SOFI could get hit hard, which would hurt our trade badly.

That being said, should the market get back in gear, SOFI stock has been a star as of late, and to pay $3.75 for a call with seven months until its expiration is a great risk/reward opportunity.

Buckle up!