Why Roy is Selling SoFi Before Earnings | Fintech Frenzy

Sold all mine today

Is Roy dressed as Walter Payton? Other than that great show. 3 cents 3 cents and huge H2 raise. I'm levered up to the hilt. If Roy is right I will sustain massive losses. I don't trust him he isn't Canadian

Software structure going into earnings. Wow

So after the talk about the software, what to say if the stock goes into the 6s.

Hey Tannor, here is some clarification on how puts work. A put is a contract that gives one the right, but not the obligation, to sell a stock at a given price, this price is called the strike price. If one sells a put, they are obligated to buy shares at the strike price if the person they sold the contract to exercises. As for how this could be disadvantageous for someone selling puts, it is because you could be forced to buy shares above market price. Here's an example:

Jimmy sells a put contract to Ted at the strike price of 6.50. The stock price falls to 6.00 before the contract expires, and Ted exercises the contract. This would force Jimmy to buy the shares (typically 100 shares per contract) at the price of 6.50, which would be 0.50 above the current market value. The result would be a 50 loss on execution.

The upside of selling puts is that the seller gets premium immediately upon selling the contract.

As for the difference between cash-secured puts and "naked" puts, secured require one to lock away capital in the case of execution. Using the example above, Jimmy would have to maintain a balance of 650 to cover the event of the contract's execution, until the contract is exercised or expires. Naked puts do not have such capital requirements and can therefore be easily abused and exist as somewhat of a form of leverage in their own right.

Edit: I feel is it worth stressing that contract owners have the right, BUT NOT THE OBLIGATION to exercise contracts. In theory, a stock price can fall below a strike price without the holder exercising the put. In this case, the stock could continue to fall, worsening the seller's losses if then exercised, or the stock price could go up, even back to above the strike price. In the modern market, many options contracts are bought and sold by market makers to provide liquidity, and they are prone to exercising options quickly after it becomes profitable for them, but there is no guarantee of when your option will be exercised. This is why it is called an option, one has the options to exercise or not.

Tannor says to Tevis indirectly about being on the live, help me to help you.

Sold already and took profits. Will scalp this coming earnings. 💵

Bought More!!! We going up for once!

Selling puts are for when you are slightly bearish or neutral for the short term and bullish long term. I would much rather own shares at this price and would not consider selling puts until share price moves from very undervalued to fairly valued by my metrics (around 12-14).

Roy just got done fighting in cobra Kai show 😂

Great discussion about software releases. Is Roy wearing a Chicago Bears throw? Go Bears!

I bought some CSPs back, because I owned them on margin and didn't want to buy shares on margin if the share price went the wrong (down) direction.

3 paperhand stoogers

Roy, my fellow houstonian, this goddamn rain wont stop 😪. I feel you brother

Selling cash secured puts on sofi is not selling sofi at all. Its actually more bullish than simply buying shares

And in my opinion, the sole major downside of selling cash secured puts is the cash secured part. You have to keep the cash in your brokerage sitting there just in case the option goes in the money and executes. Having cash sitting around waiting to potentially buy 100 shares of a stock has an opportunity cost associated with it. For smaller accounts, it usually doesn’t make much sense to do, but with large accounts that rotate in and out of positions and have a steadish amount of cash on hand, a few CSP’s are tolerable

roy = ghandi

Funny thing is... Everyone's gonna sell and drive the price down based on the comments. Just for that, I hope it's a beat with big news and Institutes light this thing up 🔥! Gonna laugh if it rips up and some people miss the boat 🚢. If it starts sinking I'll buy more to keep it floating!

I’d love to see SoFi do:
A UI update
SMB
Expand into Latin America (Mex & Braz)
Wealth management

Am buying sofi

Earnings are going to be great this qt