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SAN FRANCISCO - Financial technology company SoFi (NASDAQ:SOFI), which has seen its stock surge over 230% in the past year according to InvestingPro data, announced Thursday it has begun rolling out Options Level 1 trading to its investment platform members, with full availability expected in the coming weeks. The company, now valued at nearly $31 billion, has shown remarkable growth with revenue increasing by 29% year-over-year.
The new offering will allow approved members to access foundational options strategies including covered calls and cash-secured puts, expanding on the Options Level 2 strategies already available. SoFi is implementing the feature with no commissions, no contract fees, and is also removing fees for options exercise and assignment. With average daily trading volume exceeding 69 million shares, SoFi has established itself as a significant player in the fintech space.
"One of the most consistent requests we heard from SoFi Invest members was access to Options Level 1," said Anthony Noto, CEO of SoFi.
The company stated that members can apply for Options Level 1 trading directly through the SoFi app, where they will also find educational resources explaining how options work, associated risks, and responsible integration strategies.
According to the press release, SoFi plans to expand its options trading capabilities with additional levels and strategies, options trading in IRAs, and zero day to expiration contracts. The company also intends to enhance tools for options screening, strategy building, and profit calculations.
This expansion follows a year of growth in SoFi’s investment offerings, which recently included access to private markets, alternative funds, and a relaunched robo-advisor in partnership with BlackRock. According to InvestingPro, SoFi maintains a healthy financial position with a strong gross profit margin of 82% and positive earnings per share of $0.51. For deeper insights into SoFi’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
SoFi emphasized that options trading involves significant risk and is not suitable for all investors, noting that eligibility is determined by factors such as trading experience, investment objectives, and financial situation.
In other recent news, SoFi Technologies has seen several significant developments. Needham has raised its price target for SoFi Technologies to $29 from $25, maintaining a Buy rating. This adjustment follows the publication of Needham’s digital lending funding tracker, which shows improvements in funding availability and costs for lending businesses. Additionally, SoFi’s CEO, Anthony Noto, entered into a prepaid variable forward contract involving 1.5 million shares of the company’s stock, representing about 7% of his beneficial ownership. The contract is set to mature in approximately three years, with the option to settle in shares or cash, depending on SoFi’s share price at that time.
In another development, SoFi announced a partnership with Lightspark to launch blockchain-enabled international money transfers through the SoFi app. This service, expected later this year, aims to offer lower fees and faster delivery compared to traditional providers. William Blair has reiterated its Outperform rating on SoFi, expressing confidence in the company’s growth outlook after meetings with its leadership. These recent developments highlight SoFi’s strategic moves in the financial technology sector.
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