Summary of "HUGE SOFI LEAP Trade and Sell Put Trade I’m Executing Now!"

HUGE SOFI LEAP Trade and Sell Put Trade I’m Executing Now!

Key Finance-Specific Content Summary

Ticker/Asset

SoFi Technologies, Inc. (Ticker: SOFI)

Context & Macroeconomic/Company Context

SoFi is approaching a critical earnings report on October 28th, which could redefine it from a fintech stock to a broader financial empire.
Recently launched a new revenue stream: option trading (Level 1) started in early October (~October 2nd), potentially boosting earnings.
Analysts focus on earnings results, but smart investors prioritize company guidance, which can cause significant stock rerating (5-15%+ moves possible).
SoFi’s financial model centers on acquiring and upselling customers across multiple products—a key growth and profitability driver to watch during the earnings call.
Implied volatility is elevated (~84%), increasing option premiums ahead of earnings.

Trading Strategies & Methodologies Discussed

1. Short-Term Call Option Trade (November Expiration)

Strategy: Buy a slightly in-the-money (ITM) call option (e.g., $25 strike).
Current SOFI price: ~$26.74.
Delta: ~0.64 (option price moves $0.64 for every $1 move in SOFI).
Premium cost: ~$360 per contract.
Target price: Around $30 per share (technical resistance level).
Potential return: If SOFI moves $3 up, option could gain ~$2 (~40% return on premium).
Risk: Option premium decay if SOFI does not move up; however, since option is ITM, it retains some intrinsic value.

2. Long-Term LEAP Call Option Trade (September 2026 Expiration)

Strategy: Buy LEAPS call option (e.g., $25 strike).
Premium cost: ~$800 per contract (requires more capital).
Delta: ~0.68 (similar responsiveness to stock price as short-term call).
Advantage: More time for stock appreciation and earnings surprises; less time decay risk.
Trade-off: Higher upfront cost but better risk-to-reward profile over the long term.
Alternative strikes: $30 strike is cheaper but out-of-the-money (lower delta).
Recommendation: LEAPS preferred for retirement and long-term growth due to time horizon and risk profile.

3. Selling Put Option (November 21 Expiration)

Strategy: Sell a put option at $25 strike, collecting premium and potentially acquiring shares at a discount.
Premium collected: ~$186 per contract.
Capital at risk: ~$2,300 per contract (strike price × 100 shares).
Implied volatility: ~84% (high, leading to rich premiums).
Delta: 0.35 (out-of-the-money put).
Return: Approximately 7.5% return on capital in about 30 days.
Outcome:
- If SOFI stays above $25, keep premium as income.
- If SOFI falls below $25, get assigned shares at a discounted price.
Strategy alignment: Income generation and retirement investing.
Presenter’s view: Safer, income-focused approach favored by the presenter and coaching team.

Technical Analysis Notes

Use of Bollinger Bands to assess trading range and volatility.
SOFI currently trading slightly above its moving average.
$30 per share is a key resistance level previously tested but not breached.
Earnings event could trigger a breakout above $30.

Key Numbers & Timelines

SOFI stock price: ~$26.74 (at time of video).
Earnings date: October 28th.
Short-term call expiration: November (about 30 days).
LEAP expiration: September 2026.
Put option expiration: November 21st.
Put premium: $186 per contract (~7.5% monthly return).
Implied volatility: ~84%.

Disclaimers & Recommendations

The presenter is not a financial advisor but a coach providing education. Trading options involves risk, and suitability depends on individual risk tolerance. Viewers are encouraged to engage, ask questions, and learn about options for retirement. Selling options is emphasized as the bread and butter strategy for income generation in their coaching program.

Presenters / Sources

Main presenter: Unnamed individual hosting the Option Retirement Academy.
Coaching team includes three other coaches.
The channel and program focus on daily trading meetings, option education, and retirement strategies.

Summary

The video outlines three option strategies around SoFi (SOFI) ahead of its October 28 earnings:

A short-term call option for an aggressive upside play.
A long-term LEAP call option for a safer, long-horizon growth bet.
A put-selling strategy aimed at income generation and potentially acquiring shares at a discount.

The presenter emphasizes the importance of earnings guidance, technical analysis (Bollinger Bands), and implied volatility in shaping these trades. The put-selling strategy is highlighted as the safest and most income-focused approach for retirement investors.