Although SOFI is flying and you think it's gotten away, the extremely high premiums caused by the volatility give us a nice opportunity for a new trade:
-
- Buy 50 2027 $10 calls for $8.40 ($42,000)
- Sell 50 2027 $17 calls for $5.60 ($28,000)
- Sell 15 2027 $15 puts for $4.45 ($6,675)
- Sell 25 July $16 calls for $3.35 ($8,375)
- Sell 15 July $14 puts for $2.20 ($3,300)
That's a net $4,350 credit on the $35,000 spread so the upside potential at $17 is $39,350 (900%) and the nice thing is that this spread is already $5.50 ($27,500) in the money to start.
We can't lose on both sides of July and, if SOFI is higher, we will roll the short calls to a higher strike. At the moment, the Jan 2026 $20 calls are $3.30, so that would be our likely roll and, as long as those two remain about even - there's no cause to worry. Similarly, the short puts can be rolled if SOFI goes lower.
We are obligating ourselves to buy as many as 3,000 shares of SOFI at $15 ($45,000), less the $4,350 credit so net $40,650 works out to $13.55 per share. That's our WORST case scenario if SOFI drops down and we are assigned 3,000 shares and lose everything on the spread - a 13.3% discount to the current price is our worst case!
Aren't options fun?