Financial services platform SoFi Technologies (SOFI) has been on a tear, with shares up 114% over the past year. One trader sees further gains into the summer of 2025.
That’s based on the July 2025 $21 calls. With 235 days until expiration, 6,764 contracts traded compared to a prior open interest of 102, for a 66-fold rise in volume on the trade. The buyer of the calls paid $1.85 to make the bullish bet.
SoFi shares recently traded for about $15.50, so the stock would need to rise by $5.50, or 35%, for the option to move in-the-money.
The soaring share price comes as SoFi has started to show some profitability, and as revenues have jumped 34% over the past year.
Lending trends are expected to improve as interest rates further decline into 2025, which should allow shares to appreciate further.
Action to take: SoFi has had a great run so far, and the momentum is still on the side of trending higher into next year. Momentum investors in particular may like shares here, or on any small pullback in the weeks ahead.
For traders, the July 2025 calls are well positioned for a further rally into next year. Traders can likely see mid-to-high double-digit returns going into the middle of next year. Less aggressive traders may want to look at options with a closer strike date.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.