SoFi Technologies Stock Seeing Post-Earnings Options Surge

The company announced better-than-expected Q4 results

Digital Content Manager
Jan 30, 2023 at 11:28 AM
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SoFi Technologies Inc (NASDAQ:SOFI) reported smaller-than-expected fourth-quarter losses of 5 cents per share this morning, as well as a revenue beat. The digital personal finance name also added close to 480,000 members for the quarter, up 51% year-over-year for a total of 5.2 million members. At last check, the security is up 12.8% at $6.70.

Overall options volume is today running at 14 times the average intraday amount, with 222,000 calls and 46,000 puts exchanged. Most popular is the weekly 2/3 7-strike call, followed by the 7.50-strike call in the same series, with positions being opened at both.

That makes a sharp shift in sentiment, giving short-term options traders have been particularly bearish. This is per SoFi Technologies stock's Schaeffer's put/call open interest ratio (SOIR), which sits higher than 98% of annual readings, indicating these traders have rarely been more put-biased.

The brokerage bunch is bullish on SOFI, with seven of the 11 analysts in question rating it a "strong buy," while the 12-month consensus target price of $7.25 is a 5.5% premium to current levels. Short interest is also unraveling, down 14.7% in the last two reporting periods, though the 89.89 million shares still account for a whopping 10.9% of the equity's available float. 

The stock is today trading at its highest level since August, and blasting through long-term resistance at the $6 level, though the $7 region looks ready to cap today's gains. Shares are also eyeing their second-straight close above the 200-day moving average, and have added 25.9% in the past three months.
 

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