On CNBC’s “Options Action,” Mike Khouw said SoFi Technologies Inc (NASDAQ:SOFI) traded more than three times its average daily options volume on Tuesday. Calls significantly outpaced puts as nearly 340,000 calls traded.
The most active options in the name were the July 2 expiration, $20-strike calls. Over 38,000 contracts were traded for 92 cents, which sets the breakeven for the trade at $20.92 or around 11% above the closing price on Tuesday. Khouw has also noticed some activity in the regular July expiration calls and the August $25 calls.
Implied volatility in SoFi Technologies rose substantially over the last couple of trading sessions and it’s now trading at over 100%, said Khouw. This tells him the stock could move as much as 40% over the course of the next three months or so.
