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Exercising: SOFI 2 x 15 August 20th Long Calls... and closing August 20th 20 Short Call and opening September 2x 20 Short Calls. Notes: This is a trade that started out as a call ratio where I bought 2 x the 15's calls and sold a 20 call in the August 20th expiry, after which it promptly moved toward 15. I'm inclined to think that it will need more time to work out, so exercised the long calls today to take on a two-lot of shares before more of the extrinsic value pisses out of them and then proceeded to sell calls against the two-lot in the September monthly. In a nutshell, I'm converting it to a 2 lot of September 17th 20 covered calls, which was basically my original plan if I didn't get a fairly immediate move. Here's the math: Original Setup: 5.79 Debit Exercise of the Long Calls and Close of the August 20th 20 Short Call: 27.75 Subtotal: 33.54 debit ($3354) Cost Basis Per Share: 33.54/2 = 16.77 September 20th 20 Calls: .60/contract Credit Resulting Cost Basis: 16.17/share And we'll see how things go from here.
NASDAQ:SOFILong
by NaughtyPines
3
Banking on SoFiFinancial Technology (FinTech) is revolutionizing the way we transact in our daily lives. The days of paying in cash are far and few between. Say goodbye to those pesky coins. Regardless of blockchain disruption, the future of finance will for certain be digital. So how do you play this industry? You can go through high flyers like Paypal (PYPL) or Square(SQ) but these companies have had their run. Instead rely on an industry-low flier, Social Finance (SoFi). This company is going above and beyond traditional finance. This company is creating a one-stop-shop, financial community. The company has endeavored in debit, credit, insurance, crypto, and much more. This is exactly the financial innovation that the millennial+ (1981-present) generation needed. Image an entity that you can use for daily transactions, mortgage loans, auto insurance, and stock/crypto investing, that is SoFi. Did I mention they have a community aspect as well? SoFi is the banking industry in multiple facets. SoFi provides membership to its clients to where you can get financial planning, transaction summaries, store discounts, personalized career advice, and exclusive events. That the antonym to traditional, wall-street banking. A community environment that provides you knowledge and partnership in your financial journey. The insights provided are enlightening and insightful. The best part yet, the recent price action. The company has been on a downtrend for the past couple of months but it is reaching a potential inflection point at its well-established support. The company has previously bounced off these levels indicating a possibility for another reversal. The risk-reward is very compelling considering that the downside is less than -10% while the upside is a more favorable +75% to the prior resistance. That is a modest price target of ~$23. However, the company is currently trading at a market cap of ~$13B. At the same time, PYPL and SQ have market caps of $353B and $108B, respectively. If it is truly the disruptor in its infancy ages, in due time the stock will have similar market cap trajectories, a potential 10x. Finally, the smart money is already in this name. Although the coverage by analysts is minimal they are all indicating upside movement. If other analysts start covering the name it could serve as a catalyst. Renowned venture capitalist, Chamath Palihapitiya, is the CEO and a major shareholder (good management). Large institutional money such as SoftBank entered the stock at a higher price. Smart money is leading the way. Bank on it.
NASDAQ:SOFILong
by howdydany
Trade Idea: SOFI August 20th 2x15 Long Call/20 Short Call RatioHere, looking to potentially get into this underlying on weakness with a high long delta setup while not spending a lot of buying power doing it. Unfortunately, the strikes aren't as granular as I'd like with my general standard setup for these being (a) buying 2 x 75 delta; and (b) selling a 1 x 50 delta, resulting in a net delta long metric of around 100 so that the setup behaves like long stock and such that the short finances all the extrinsic in the longs. Nevertheless, I get close delta-wise to what I'd like to see out of these and get a break even close to where the underlying is currently trading. Metrics: Max Profit: Theoretically Infinite Max Loss: 5.88 ($588) Break Even: 17.94 versus a Friday close of 18.08 Delta/Theta: 110.26/-.60 Long Call Vertical Aspect Max Profit: 2.99 ($299) Generally, I look at these setups in two parts: (a) A standalone/extra long call; and (b) A long call vertical. The reason why I do that is that the long call vertical -- consisting of one of the 15 longs and the 20 short -- has a max profit metric, and if I get the move I'm looking for (which would be a move through $20), I want to potentially take profit on that aspect of the setup. There is, after all, little point in hanging onto a position that is converging on max profit, since you can't make any more money on it (but can naturally still lose money on it). Given the duration I've got to work with (around 45 days), I could also consider doing a money/take/run on a print that is a function of the long call vertical's max (e.g., 25% of 2.99 = .75, which wouldn't be all that bad of a return on capital -- 12.8%). Additionally, if I get a monstrous move (e.g., to the top of the range at $25+), I can consider not only peeling off the long call vertical aspect in profit, but also selling another call against that is higher up the ladder and against the "extra" 15, converting the remaining part of the position into a second long call vertical with its own max profit metric (and improved break even). Lastly (and again assuming a big move), I can pull off the long call vertical on approaching max, ride the extra long and then proceed to exercise it for shares and then sell call against, converting it into a covered call, assuming I want to tie up the buying power in a full one lot at that point in time.
NASDAQ:SOFILong
by NaughtyPines
16
SOFI - This Is The BeginningHello everyone, I hope you are doing fantastic. We went through the SPAC merger with amazing volume and great price movement. I would say that this is one of the best value plays at the moment and we got a rather cheap valuation of around 2.3B Market Cap for the stock, which gives us plenty of growth potential. The company may very well be one of WSB's mentioned stock, so this may further drive the price up. Also, it does have the potential to get on the ARK portfolio in the future, which would further increase the price. The minimum price target on the stock is $50 in my opinion and I would say we should be there until the end of the year. I see this as a pure long-term play and the price we are getting at is more than amazing. I wish you good luck and stay green!
NASDAQ:SOFILong
by donaitelo
3
IPOE long calls + protective putsSOFI+IPOE merger is on June 1, around 7 trading days. Past SPAC behavior has always dipped after merger but we will see if this can hold the price above $18.5 and $19.5 on the day of merger date. I have high exposure on this security and i will be getting a full hedge incase of a sell off. What do you guys think? 20x 17.5 October calls , 3x 15 October calls, 5x 17.5 June calls. Protective puts will be placed within the next few trading days. I would prefer to trade this stock days after the ticker change to $Sofi.
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by V2tamin