Initiate Covered Call Trade on SOFI at $31 Strike

about 1 month ago

"The second trade that I would be looking at personally because again I am bullish on SoFi: I think longterm this stock is a $50 stock and that they are going to continue to execute with great management and systems in place. If you buy 100 shares and then right away you sell a call option, making it a covered call position, you can also run the wheel strategy. I would select an option around the 31 strike with an implied volatility that is appealing, as the delta is around 37. If SoFi goes to 31, you will make more money in this scenario than the sell put example, making this covered call trade extremely profitable."

The speaker presents a covered call trade on SOFI by buying 100 shares and selling a call at the 31 strike. Citing strong implied volatility and technical factors, the call aims to generate premium income and enhance returns if the stock moves to the target price. This trade complements the sell put strategy as part of the wheel strategy approach.

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