Fintech Stock Falls Despite Upbeat Earnings

SOFI options volume is running at 11 times the average intraday amount

Deputy Editor
Apr 29, 2024 at 10:35 AM
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Fintech name SoFi Technologies Inc (NASDAQ:SOFI) reported first-quarter adjusted earnings and revenue of 2 cents per share and $581 million, respectively, both of which beat Wall Street estimates. This reported marked the firm's second consecutive quarter of profitability, but the shares are 10.9% lower to trade at $7.02 at last glance, giving back solid premarket gains. 

Despite today's pullback, SoFi Technologies stock is holding above its year-to-date lows just above the $7 level. Several short-term moving averages have kept the shares in a consolidatory pattern for the last two months. Year to date, SOFI is now 28.8% lower.

The options pits are exploding with activity, with 188,000 calls and 51,000 puts exchanged so far, volume that's 11 times what is typically seen at this point. Most popular is the weekly 5/32 8-strike call, followed by the 7.50-strike call from the same series.

This penchant for bullish bets is nothing new. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SOFI's 50-day call/put volume ratio of 3.54 sits higher than 94% of readings from the past 12 months. It's also worth noting that the shares sold short account for 18.3% of the security's total available float.


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