SoFi (SOFI) Options Trading Strategies
Summary
SoFi trades around $10-$15 with IV between 50% and 70%. The stock's low price ($12) makes options trading accessible to very small accounts — 100 shares costs just $1,200. SOFI has massive retail options volume (300,000+ contracts daily), penny-wide spreads, and weekly expirations. The bank charter provides fundamental stability that most fintech competitors lack.
Key Takeaways
SOFI is the most liquid sub-$20 options stock in the market. IV of 50-70% generates 3-5% monthly covered call premiums on a tiny capital base. The bank charter means SOFI earns interest income on deposits, providing a revenue floor. Earnings moves are typically 8-15%, making quarterly reports the primary risk event. The wheel strategy on SOFI is one of the best small-account income strategies available.
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SoFi has everything an options income trader wants in a cheap stock: massive liquidity, high IV, and a real business behind it. While many sub-$15 stocks are speculative bets, SoFi is a bank with $25+ billion in deposits, a lending business, and an investment platform. The bank charter (obtained in 2022) transformed SOFI from a growth-at-all-costs fintech into a revenue-generating financial institution.
Options Profile
With SOFI at $12:
| Strike (30-DTE) | Delta | Premium | Monthly % | Annualized |
On a $1,200 position, the 0.20 delta call generates $45 per month. Scale to 500 shares ($6,000) and you're earning $225 monthly.
Strategy 1: The Wheel (Best for Small Accounts)
The wheel is tailor-made for SOFI. Here's a realistic cycle:
Week 1: Sell the $11 put (30-DTE) for $0.40. Cash reserved: $1,100.
Week 4: SOFI is at $11.50. Put expires worthless. Profit: $40. Return: 3.6%.
Week 5: Sell the $11 put again for $0.35. Cash: $1,100.
Week 8: SOFI drops to $10.80. You're assigned at $11 (effective cost $10.65).
Week 9: Sell the $11.50 call for $0.40.
Week 12: SOFI recovers to $12. Called away at $11.50. Net profit per share: ($11.50 - $10.65) + $0.40 = $1.25, or 11.4% on $1,100 in ~12 weeks.
On a $5,000 account, run wheels on 3-4 cheap stocks (SOFI, F, PLTR, NIO) for diversified income.
Strategy 2: Earnings Strangles
SOFI's earnings moves are large — typically 8-15% — and the implied move (priced into the straddle) is usually close to accurate. Selling a strangle at 1.2x the expected move captures the IV crush without taking directional risk.
SOFI at $12, earnings tomorrow. The straddle implies a $1.50 move (12.5%). Sell the $14 call and $10.50 put for $0.60 combined. If SOFI stays between $10.50 and $14 (which represents a 14.5% range up and 12.5% range down), you keep the $60 per contract.
Size small: 1-2% of your account per earnings trade.
Strategy 3: LEAPS + Short Calls
Buy a 12-month $8 LEAPS call (~0.80 delta) for $5.00. Sell monthly $13 calls for $0.45. Your capital outlay is $500 per contract, and you collect $45 monthly — a 9% monthly yield on the LEAPS cost.
The risk: if SOFI drops below $8, your LEAPS loses most of its value. But the high monthly income (potentially $540/year against a $500 investment) means you break even quickly.
Fundamental Floor
What separates SOFI from other high-IV cheap stocks is the banking business. SOFI Technologies Bank holds $25+ billion in deposits, earning net interest income that provides a revenue floor even if the lending or investment platform businesses stumble. This doesn't make SOFI immune to selloffs, but it does reduce the risk of a sustained 50%+ decline that can happen with pre-revenue companies.
OptionsPilot's covered call finder works for any stock price, including SOFI's sub-$15 range, helping you find the strike that maximizes your monthly return at your target probability of profit.