$SOFI $30 1/30 calls

This play is a reversal/earnings play. SOFI has reached a bottom at the $26 range, and has since bounced to 26.98, where it closed.

First off, SoFi is a digital financial services company that offers banking, loans, investing, and personal finance tools all in one app to help users manage, borrow, and grow their money.

I am bullish for a few reasons:

SOFI has demonstrated some very rapid growth over the past couple of quarters.

For example, they added roughly 850k members, bringing the total membership to 11-12 million.

SOFI is also diversifying its revenue stream by no longer being just a lender; it now earns meaningful revenue from financial services and technology platforms. SOFI is also adding crypto trading, alternative private-market funds, and AI tools to their platform.

Now on the financial side of things:

SOFI’s revenue and GAAP profitability have been rapidly growing this year.

Q1 revenue- $772M

Q2 revenue- $855M

Q3 revenue- $950M

Q1 GAAP- $71M

Q2 GAAP- $97M

Q3 GAAP- $139.4M

As you can see, both the revenue and GAAP are growing each year, which is bullish. Management has raised guidance, including forecasts for higher revenue, earnings, and adjusted EBITDA.

Note: SOFI is down because they had a share offering, big names like Goldman Sachs, BOA, and Citigroup bought. Therefore, smart money is getting in right now.

In conclusion, I am very bullish on this play as SOFI has demonstrated remarkable earnings lately and checks multiple boxes.

SOFI has found a bottom and recently bounced off 26, showing that it has found support.

SOFI has earnings coming up at the end of the month, so I believe that buying in now at essentially the bottom is perfect timing to ride these until the days leading up to the release of the earnings.