Can SoFi Hold Above $8? - sofi stock analysis

Summary

In today's stock update, the focus is on Sofi, which saw a slight 1.71% drop but held above the critical $8 mark. Despite market manipulation and low-volume trading, Sofi's stock maintained key support. The video discusses options trading, short-selling activity, and a notable SEC filing involving the sale of shares by an executive due to personal reasons. Upcoming Federal Reserve rate cuts and their potential market impact are also highlighted. Investors are advised to watch key support levels, with Sofi's earnings report expected soon. The video encourages viewer engagement and opinions on Sofi's performance.

Takeaways

• 📉 Sofi's stock recently experienced a drop of 1.71% but remained above the critical $8 mark.
• 🔄 The stock showed significant volatility, with a previous dip to $8.03, possibly due to market manipulation.
• 📈 Despite low volume trading, Sofi's stock held steady, which is a positive sign.
• 📄 An SEC filing indicated that Jeremy, likely due to divorce proceedings, is selling 68,000 shares.
• 💼 The selling by Jeremy is personal and should not be seen as a reflection of Sofi's performance.
• 🌐 There was no major news from Sofi, but the broader market is reacting to potential Federal Reserve rate cuts.
• 📊 Short sellers returned about 1.45 million shares, contributing to the day's volatility.
• 💹 About 18.5% of Sofi's free float is being shorted, indicating continued pressure on the stock.
• 📈 Options trading was active, with $946 million in call options and $578 million in put options.
• 📊 The stochastic oscillator suggests Sofi's stock is overbought, with potential for consolidation or a slight pullback.

Q & A

What recent price movement did Sofi experience?

Sofi recently experienced a drop of 1.71%, but it held above the critical $8 mark, which is important for maintaining support.

Why is the $8 mark significant for Sofi's stock?

The $8 mark is significant because staying above this level helps maintain support in a volatile market. There was even an effort to push the stock below $8, but it held steady.

What unusual trading activity was observed for Sofi stock?

Around 35.9 million shares were traded, which is below the average of 40.6 million, but 6 million shares were traded after hours, likely tied to options trading.

What is the significance of the SEC filing mentioned in the script?

The SEC filing showed that Jeremy, likely referring to a shareholder going through a divorce, sold 68,000 shares. This is personal and doesn't reflect on Sofi’s performance.

How might the Federal Reserve's potential rate cuts affect the market?

Investors are speculating about potential 50 basis point rate cuts. Some believe it signals a recession, while others think it could drive consumer spending and push the market higher.

What was the short interest situation for Sofi stock?

As of now, about 18.5% of Sofi’s free float is being shorted, translating to roughly 193.45 million shares. The average borrowing cost is around 0.93%, and there's still significant pressure on the stock.

What was notable about Sofi's options trading activity?

Sofi closed above $8 with $946 million in call options and $578 million in put options. Despite holding above $8, about 66% of options activity was bearish, with a significant focus on the $8 strike price.

How did after-hours trading affect Sofi's stock?

After-hours trading was active, with market makers likely covering options positions. This could lead to a small bump in Sofi's stock price early next week.

What technical indicators suggest Sofi may face a pullback?

The stochastic oscillator shows Sofi is in overbought territory with a reading of 79. There’s also a bearish crossover forming, signaling potential consolidation or a slight pullback.

What support levels should investors watch for Sofi stock?

If Sofi falls below $8.22, the next major support level is at $7.79. The stock has a chance to bounce off these levels and trend higher, especially with earnings on the horizon.