Options traders excited about fintech as big banks spend money


JPMorgan’s acquisition of OpenInvest, a San Francisco-based ESG start-up, marks its third fintech deal in the past year. The recent surge in buying has prompted options traders to speculate on who might be the next pick-up target in the fintech space.

SoFi Technologies, another San Francisco-based company specializing in mobile loan refinancing, mortgages and other financial products, is a name that is seeing a major increase in its business.

“It’s a name that usually trades quite a few options, but it’s trading a lot more today, more than three times its average daily options volume. Almost 340,000 calls have been traded and calls have been traded. significantly outperformed put options, “said Michael Khouw, CIO of Optimizer told CNBC on Tuesday”Quick money. “

Many of these calls, on several different strikes and expirations, were bought to open. This indicates that bullish activity is not limited to a particular period of time and traders are not united in their thesis on what level of SoFi can reach. However, the bets seemed to weigh on the short term.

“The most active options were this week’s 20-hit calls. Over 38,000 of these traded at around 92 cents, so traders are obviously betting that the stock can recover from this. [Tuesday’s] decline and some of the weakness that we’ve seen over the past two days, ”Khouw said.

Those calls expire this Friday at a breakeven price of $ 20.94, about 11% higher than where the stock closed Tuesday’s session.

SoFi was up 4% in Wednesday’s session.

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