SoFi Technologies Stock Flies Higher, Options Traders Slam Calls

On Monday, Jim Cramer said he expects SoFi Technologies Inc SOFI to fall lower, adding he would be a buyer at the $14 level — but may not get that chance.

On Tuesday, SoFI’s stock rallied over 10% higher amid increased retail interest, but institutions were also hammering call contracts.

SoFi’s stock bottomed at a strong support and resistance level at $14.87 on Monday. The stock has held above the level almost every day since Jan. 7, when SoFi closed the day up 56.89% due to an epic short squeeze attributed to the r/WallStreetBets community.

On Wednesday, SoFi’s stock regained support of the eight-day exponential moving average (EMA) and nicked a resistance level at $16.50 before consolidating on smaller timeframes. If SoFi can clear the level, it has room to move up toward $17.87, where another level of resistance awaits.

Institutions aren’t waiting to see if SoFi can get further bullish continuation on Thursday to buck its downtrend, and on Wednesday a number of traders purchased over $1.07 million in bullish call contracts.

See Also: Understanding SoFi Technologies's Unusual Options Activity

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call or put option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

The SoFi Trades: Below is a look at the notable options alerts courtesy of Benzinga Pro:

• At 9:43 a.m., a trader executed a call sweep near the ask of 1,001 SoFi Technologies options with a strike price of $15 expiring on Sept. 17. The trade represented a $216,216 bullish bet for which the trader paid $2.16 per option contract.
• At 10:46 a.m., a trader executed a call sweep near the ask of 288 SoFi Technologies options with a strike price of $15 expiring on Sept. 17. The trade represented a $59,904 bullish bet for which the trader paid $2.08 per option contract.
• At 11:57 a.m., a trader executed a call sweep near the ask of 357 SoFi Technologies options with a strike price of $15.50 expiring on Aug. 20. The trade represented a $46,053 bullish bet for which the trader paid $1.29 per option contract.
• At 11:59 a.m., a trader executed a call sweep at the ask of 200 SoFi Technologies options with a strike price of $15.50 expiring on Aug. 20. The trade represented a $26,200 bullish bet for which the trader paid $1.31 per option contract.
• At 12:13 p.m., a trader executed a call sweep near the ask of 740 SoFi Technologies options with a strike price of $16 expiring on Aug. 20. The trade represented a $93,980 bullish bet for which the trader paid $1.27 per option contract.
• At 12:15 p.m., a trader executed a call sweep near the ask of 489 SoFi Technologies options with a strike price of $16 expiring on Aug. 20. The trade represented a $61,614 bullish bet for which the trader paid $1.26 per option contract.
• At 12:52 p.m., a trader executed a call sweep near the ask of 238 SoFi Technologies options with a strike price of $17.50 expiring on Aug. 20. The trade represented a $25,704 bullish bet for which the trader paid $1.08 per option contract.
• At 12:56 p.m., a trader executed a call sweep near the ask of 250 SoFi Technologies options with a strike price of $17.50 expiring on Aug. 20. The trade represented a $28,250 bullish bet for which the trader paid $1.13 per option contract.
• At 12:59 p.m., a trader executed a call sweep near the ask of 357 SoFi Technologies options with a strike price of $16 expiring on July 23. The trade represented a $28,560 bullish bet for which the trader paid 80 cents per option contract.
• At 1 p.m., a trader executed a call sweep near the ask of 416 SoFi Technologies options with a strike price of $20 expiring on Aug. 20. The trade represented a $25,376 bullish bet for which the trader paid 61 cents per option contract.
• At 1 p.m., a trader executed a call sweep near the ask of 200 SoFi Technologies options with a strike price of $16 expiring on Aug. 20. The trade represented a $37,000 bullish bet for which the trader paid $1.85 per option contract.
• At 1 p.m., a trader executed a call sweep near the ask of 210 SoFi Technologies options with a strike price of $15 expiring on Aug. 20. The trade represented a $49,350 bullish bet for which the trader paid $2.35 per option contract.
• At 1:01 p.m., a trader executed a call sweep near the ask of 1,000 SoFi Technologies options with a strike price of $17.50 expiring on Oct. 15. The trade represented a $231,000 bullish bet for which the trader paid $2.31 per option contract.
• At 1:07 p.m., a trader executed a call sweep near the ask of 408 SoFi Technologies options with a strike price of $17 expiring on Aug. 27. The trade represented a $65,688 bullish bet for which the trader paid $1.61 per option contract.
• At 1:08 p.m., a trader executed a call sweep near the ask of 1000 SoFi Technologies options with a strike price of $17 expiring on July 23. The trade represented a $28,000 bullish bet for which the trader paid 28 cents per option contract.
• At 1:20 p.m., a trader executed a call sweep above ask of 450 SoFi Technologies options with a strike price of $17 expiring on July 30. The trade represented a $27,450 bullish bet for which the trader paid 61 cents per option contract.
• At 1:24 p.m., a trader executed a call sweep at the ask of 449 SoFi Technologies options with a strike price of $17 expiring on July 30. The trade represented a $27,838 bullish bet for which the trader paid 62 cents per option contract.

SOFI Price Action: Shares of SoFi Technologies were trading up 9.69% at $16.52 at last check Wednesday.