Any advice on SOFI <40dte? What is the typical lot size for the group? Thanks!
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What is SOFI?
SoFi is a financial-services company that was founded in 2011 and is based in San Francisco. Initially known for its student loan refinancing business, the company has expanded its product offerings to include personal loans, credit cards, mortgages, investment accounts, banking services, and financial planning 1.
According to Barchart, the stock price of SoFi Technologies Inc (SOFI) has been volatile since its IPO in 2021. As of December 21, 2023, the stock price of SOFI is $9.75.
Well, to answer your question: all CSPs or CCs are in lots of 100. So you’ll be getting a contract that is per 100 shares. 10 contracts > 1000 shares worth if you are assigned on selling a PUT to open.
There is a lot of hype around SOFI, but they missed last quarter. Earnings are soon, and there is a bull period right now. So caveat emptor. If you end up owning the stock, will you be happy with the current price between $8 and $9.75? Revenue is growing fast, but so are losses. They have cash in the bank. Obviously, they’re not going to be profitable any time soon. There is a potential for a short squeeze at some point with 39% of shares in institutional ownership & 15% of the float short.
So, I priced an annualized rate of retun for $8, $8.5 and $9 as follows: 19.61%, 35.15%, and 57.12% at Jan 26th 2024 with premiums of 18c, 30c, and 45c per share. YMMV. Costs & Taxes not included.
Any trades you make are your choice. Personally, I’m not interested in stocks with a negative p/e unless profitability is soon. There are clouds on the horizon, including falling interest rates, a possible recession, and poor consumer lending.