SoFi Technologies Launches New December Options Trading

SoFi Technologies Inc (Symbol: SOFI) has initiated options trading for contracts expiring on December 19th. These new contracts, with 205 days until expiration, may provide sellers of puts or calls opportunities to secure higher premiums compared to shorter-term contracts.

Notably, a put contract is available at an $11.00 strike price, currently bid at 39 cents. Selling to open this put obligates the investor to buy shares at $11.00 while collecting the premium, effectively lowering the cost basis of the shares to $10.61 (excluding commissions). This is an attractive alternative for those interested in acquiring SOFI shares at a lower price than the current $13.28/share.

Since the $11.00 strike represents a 17% discount off the current trading price, there is a 74% chance the put contract will expire worthless based on current analytics. If it does expire worthless, the premium would yield a 3.55% return on the cash commitment, or 6.31% annualized.

A chart illustrating the trailing twelve-month trading history for SoFi Technologies Inc highlights where the $11.00 strike lies relative to historical data:

On the call side, a $15.00 strike call contract is currently bid at 68 cents. If an investor purchases SOFI shares at $13.28 and sells this call as a covered call, they commit to selling at $15.00. This strategy could yield an 18.07% total return if the stock is called away by expiration (excluding dividends and commissions).

The $15.00 strike represents a 13% premium to the current trading price, with a 49% chance of the call contract expiring worthless. If it does expire worthless, investors keep their shares and the premium, resulting in a 5.12% extra return or 9.12% annualized.

The implied volatility for the put contract stands at 81%, while the call contract’s implied volatility is at 63%. Actual trailing twelve-month volatility, based on the last 250 trading days and today’s price of $13.28, is calculated at 61%.

For additional options contract ideas, visit StockOptionsChannel.com.