In August of 2011, Social Finance, Inc. was founded by Stanford University business students as an alumni-funded lending model connecting recent grads with alumni. The next year, SoFi introduced student debt refinancing options and today, they celebrate over one million members. Along the way, however COVID and some government programs have delayed student loan repayments.
With the debt ceiling agreement on track for happening, a provision to begin student loan repayments starting in August of 2023 is included and there is more than a chance for their stock price to double, possibly even triple over the next 12-18 months. With that in mind, we’re playing some options along the way to cash-in. Things might initially cool-off over the next week but we don’t want to miss out on any of the pop so 2fold is investing in October 20th, 2023 CALLs, Strike Price of $10 for around $.31 (.31 x 100) for a total investment of $31 for one, $310 for ten or $3,100 for one hundred. In our humble opinion, this was the reason for the low stock price and we see no obvious reason for them not to bounce back to the mid-twenties over the next 12-18 moths.
Update: 6-9-23 – As of this morning, this CALL has nearly tripled so continue with the trade, cash-out and take your winnings or do a hybrid and sell enough to pay for the entire trade and let the rest ride!
Update: 6-14-23 – Today, we closed-out one of our three SoFi options trades. It’s just a small trade, however, it’s one we’re very proud of as it resulted in more than a ten-fold gain. The trade was June 16th CALLs, strike price $10 where we bought 5 contracts at $.03 and sold them for $.40.
Update: 6-15-23 – Today, we closed-out our second SoFi options trade, this time for almost a six-fold gain. The trade was July 21st CALLs, strike price $11 where we bought 20 contracts at $.07 and sold them for $.041.
Update: 6-20-23 – This morning, we closed-out SoFi options trade #3 where we bought 4 October 20th, 2023 calls for $.29 and sold them for $.89 for 3-fold gain.