AAL

SoFi Technologies Stock Sharply Lower After Downgrade

Options traders are chiming in on the dip

Deputy Editor
Jan 3, 2024 at 11:32 AM
facebook X logo linkedin


SoFi Technologies Inc (NASDAQ:SOFI) stock is plummeting today, down 13.1% at $8.39 at last glance, after a downgrade from Keefe, Bruyette & Woods (KBW) to "underperform" from "market perform," with a price-target cut to $6.50 from $7.50. The majority of analysts lean bearish on the equity, with only six of the 19 in coverage carrying a "buy" rating. 

Today's drop has SOFI back below familiar pressure at the $9 level, as well as recent support at its 20-day moving average. In the last year, the equity is still up 87.9%. 

Options traders are chiming in on the dip, with 164,000 calls and 198,000 puts exchanged so far, which is triple the amount typically seen at this point. The January 8 put is the most popular, with new positions opening there. 

Meanwhile, though short interest has been unwinding -- down 10% in the last two weeks -- it still represents 14.5% of the stock's available float. It would take shorts over three days to cover their bets, at SOFI's average pace of trading. 

 

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.