SoFi Record High: Riding the Silent Rally with Options
Hello everyone, I’m Steven. Today let's talk about SoFi!
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, I'll share my view on the market and trending stocks along with practical options strategies![]()
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$SoFi Technologies (SOFI.US)$ has been a niche bull stock this year; from its year-to-date low of 8.6 USD to the current 32.2, the share price has almost quadrupled. More importantly, since April its uptrend has been very steady, with the largest drawdown less than 20%. Precisely because its price action is relatively stable, it gives us a lot of flexibility when designing options strategies.
This article introduces SoFi's fundamentals and shares practical option strategies. But first, let's do a poll!
1. Triple-beat earnings and record high
SoFi was founded in 2011, originally focused on lending, and has since grown into a comprehensive fintech platform. Its business is split into B2C and B2B. On the B2C side, consumers use the SoFi app to borrow, save, spend, invest and insure; on the B2B side, other companies use its tech platform (Galileo / Technisys) as “banking-as-a-service.”
SoFi’s revenue can be broken into three segments: Lending, Financial Services, and Technology (Bank-as-a-Service, BaaS). In 2024, these accounted for 55%, 30%, and 15% of total revenue, respectively.
Over the past five years, total revenue has grown from 980 million (2020) to 3.05 billion (2024), implying a 32.8% CAGR. Financial Services is currently the fastest-growing segment: from 2021–2023 it delivered triple-digit year-on-year growth for three consecutive years, and in 2024 it still grew 88% YoY. Against the backdrop of financial inclusion and related themes, this has become a new growth engine for the company.
This Q3 earnings print was a major beat across the board — a “triple-beat”, meaning revenue, profit, and loan originations all came in ahead of expectations and hit record highs. Specifically: Revenue was up ~38% YoY to a record ~$950m; Adjusted EPS was $0.11 vs. ~$0.08 expected, more than double last year’s level. Record loan originations (~$9.9bn, +57% YoY) across personal, student and home loans indicate strong demand. This confirms that SoFi’s growth story is not slowing as it scales, which is exactly what growth investors want to see.
In terms of profitability, SoFi turned profitable for the first time in 2024, which provides a solid foundation for its valuation. Earlier this year, Wall Street expected full-year EPS of 0.32; but after the Q3 release, the company raised full-year EPS guidance to 0.37, up 146% from last year’s 0.15.
SoFi is still mainly valued using a price-to-sales (P/S ratio) framework. Based on management’s official guidance, 2025 full-year revenue is expected to be 3.54 billion. Looking forward at 2026, if we assume a 20% annual growth rate, revenue would reach 4.25 billion. Applying a 12x P/S multiple implies an equity value of 51 billion. Dividing by the total share count of 1.21 billion yields a target price of 42 USD, which still leaves meaningful upside from the current level.
2. Options strategies
(1) Short put
As mentioned earlier, SoFi’s share price has been very stable since April, without any pullback exceeding 20%. Yet its implied volatility is still above 70%, which doesn’t quite match the calm price action and suggests IV is likely to compress going forward.
Given this setup, short-volatility strategies offer higher odds of success.
Unlike $NVIDIA (NVDA.US)$ or $Tesla (TSLA.US)$ , where it’s popular to run short strangles, SoFi is not well-suited for short calls. The reason is simple: the current share price is still some distance from our estimated valuation ceiling. If you short calls and the stock starts a one-way rally, your position can come under significant pressure. If the strike isn’t set far enough out of the money, there’s even a risk of being exercised.
For safety, selling puts on dips is the highest-probability trade. Technically, there are two support zones below: the first in the 21–22 range, and the second around 25. These levels can be referred to as strikes, offering a sufficient margin of safety. A term of 4–6 months is appropriate.
(2) Long call
In addition to short puts, there’s also a higher-risk but higher-reward strategy: in-the-money long calls, used to bet on a potential one-way upside breakout.
Why in-the-money? Because the broader U.S. equity market is still in a choppy phase, and we aren't be sure when SoFi might begin a sustained uptrend. In this context, if you use purely time-value out-of-the-money calls, a stretch of sideways for like 1 or 2 month can rapidly erode the time value.
As for maturity, it’s better to go slightly longer than a typical long call, namely, at least around 3–4 months are practical.
That said, entry timing is crucial: you still want to buy on dips rather than chase strength after the move has already happened.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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frankinglily : Considering SoFi’s upside potential and stable uptrend, would you prioritize short puts or long calls for a 6-month horizon, and why?
Digital Cat : Thanks, Steven, for the insightful breakdown on SoFi's fundamentals and options strategies
kat kukuuu : this could be the fintech stock to ride for the next bull cycle!
ImSteven OP frankinglily : for short put 6 month is practical, yet long call doesn't need so long, say 3-4 month is enough. if a stock takes 6 month until it goes up then why not wait for the 5th month to open the long call![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Gram55 : love sofi
Minotra :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
风火轮 Yes Yes Yes : well written.
I have a synthetic long stock on SOFI with a long ITM call and a shortbpit, effectively creating a synthetic long stock position on the underlying.
thanks for sharing.
RobertW058 : i have been a early beiliver in SOFI at $12. i have added to my position with 18 month leaps at $15.
Based on my assesment team we see SOFI hitting $50/share in early 2026.
Inwould recomend buying 18 month leaps from this point forward
75508650 : Sofi let’s go
kelvin8888 : Ox
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