SOFI had a share Lockup period expire on Monday, which had been sending shares lower (in the premarket especially) recently, creating a $1 gap in the chart (from ~$19.80 - 20.80). I am expecting this gap to be filled in the coming weeks, as the lockup period ending can now give way for the positive catalyst of a Pending Bank Charter Approval Decision, which is expected in November. Also hearing whispers that this just got picked up by the Reddit community.
For a lower risk trade idea, Try Selling an August 17.50 / 15 Credit Put Spread. As of yesterday's close, that trade would earn $.98 per spread sold, and provides you a ~14% buffer to your breakeven point, with a max loss of $1.52 per share.
For a lower risk trade idea, Try Selling an August 17.50 / 15 Credit Put Spread. As of yesterday's close, that trade would earn $.98 per spread sold, and provides you a ~14% buffer to your breakeven point, with a max loss of $1.52 per share.
Note
This is why I enjoy giving myself a 1-3 strike price buffer when selling spreads. That way, if the trade works against you initially, you aren't in a position to get stopped out on the trade. Slightly down on the trade off the bat, but sitting comfortably with a ~8% buffer to my 17.50 strike price
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.