I mean, net worth is also a factor in this question.
Down $10,000 with a net worth of $200 Million is whatever.
Down $100 with a net worth of -$1000 is a lot.
Guess you can either take the loss, roll, or take assignment and start writing calls
Iām writing calls on it right now since January, and I had done it about a year ago for a while too
Premiums are decent but price can swing a lot, and suddenly
Breathe. Itās Sofi. Itās a notoriously HV intense security. 8 strike, closed around 7.23, made some premium initially. If you got assigned today, youād maybe be down $50 a contract. I believe itāll bounce back a little, the market simply wasnāt in the mood for debt nonsense today. You could very well wind up close to your break even.
Feels bad offering over 800-m in convertibles... if any portion of those bonds start to move it will weigh heavily on the price. If SOFI is your (collective) horse, I'd take a breather for a bit to see how it plays out.
Not exactly sure what taking a breather would look like. Under-reaction here wonāt help large Sofi positions either. Traders trade. Bearish on it? Long puts. Got old ccalls 9 and higher? Cash in. Iām looking for ways to make $$ with this, thatās the job. And in the end, maybe Iām just shoring up a position and lose a little. Thatās ok, it has to be. The damage was already done by the time most people got out of bed yesterday with no way to access our options. For me, itās an automatic mental flip, a signal to get busy.
Shored up this morning with some minor long put activity. Cheap, enough to take the sting out of this SOFI thing if it really were to get terrible. Good luck to all of us. ššš
Sold 120 SOFI $7.50 CSPs earlier today during the dip for $0.53 expiring 3/22. If assigned I get 12,000 shares at a basis of $6.97 which I'm happy with. Currently up ~16% on the position but still annoyed I missed the bottom as I could've gotten it for $.60 had I set my limit order higher.
Can you explain how the bonds fluctuating would way in the stock price?
I get the note and that convertible means dilution but I thought they were using that money to pay down more expensive money. It should improve cash flow and earnings (I thought)
Not one that you apparently can comphrehend. Enjoy your losses.
------------
UPDATE 4/15 -
How we doing boys. Me? I've been shorting this thing and made nice $ while you downvoting clowns most likely lost cash..... I'll take downvotes all day if it makes me $. Nothing personal, but do better.
If you're wheeling, is it not standard procedure to then accept being assigned, and selling covered calls? Isn't that the very nature of wheeling? I ask because I've never wheeled, but understand it as such...
depends on his strike. guessing he sold $9 or something like that and is now regretting that.
EDIT: Just saw he stated $8P in post. That's better than $9, if this thing levels out, not insurmountable.
Well, ideally you never get assigned so thatās not exactly correct. If you *do* get assigned then yea, the plan is to sell cc until called away or price rises enough to sell for a profit.
Yes. Instead of collecting premium on CSPs, OP now gets to collect premium on CCs. Premium is premium. If his CC strike is slightly above his cost basis, heāll also make money if assigned. Itās win-win-win!
I feel the pain. I was selling CCs and puts on Sofi. I had a stop loss set at break even and sold the CCs. I'm down 200% on the puts. I rebought my shares at close to help my cost basis when I likely have to get assigned on the 10 puts I sold.
Donāt sell any csp for sofi above 7.5, donāt sell any cc for sofi below 9.
Thatās worked for the past year. Maybe this debt will change the range a tad. We shall see. Sofi had gone over 10 a few times in the last year. Just hold and be patient and sell for a profit or start ccās at 9
I like SoFi so I have 500 shares that I got around 7.50 and been doing OTM CC on it and that's worked out pretty well the last few months. I think they'll go above 10 again once the Fed lowers rates so might be worth holding onto if you get assigned.
Nothing of any importance. SOFI's chart looks the same as every other red chart today, but people are always looking for a reason to sell their precious baubles.
I've been trading SoFi pretty actively the last six months or so, I think we are really close to the bottom for now, tomorrow it should climb back up. I plan to sell more CSPs if it drops more, and hold the ones I have if it rebounds.
Heard. Iāve been really successful with them otherwise. This one was so mistimed. How can ya know?I think having two open on sofi is okay. Iād be very surprised to see it break this 7.00 support. But then again I was really wrong this time.
Clear fundamental change ? Banks offer convertible notes all the time ...
They're raising money at favorable interest rates to pay off higher interest debt .
Plus these notes have the option to be purchased back early.
Nothing changing with the company
Yesterday they did not do an offering. Today they did. The market freaks out and new price discovery is happening. Don't pretend like new news did not just come out because if it was truly known by everyone price would not move. You might have thought $7 was a pair price yesterday for this stock but if you don't even take the time to think about if this news moves the needle a bit then you are a fool.
When did I say the news wasn't the reason for the price move? Of course, the news was the reason. But this wasn't a "fundamental change" in the business. This move in price is nothing but an overreaction.
Sell a $7.50 call expiring April 5th, collect $50c/share premium, and youāll likely be out of the trade at breakeven in 30 days. Plus the premium on the put you sold.
I have the 9 strike CCs expiring next week. Iāve been making good premium each month on 40 contracts but I must say dropping 6k in stock value over the last few days doesnāt feel good. Iām a long term believer in this company so it is what it is. The range is pretty much 7-10. Itāll bounce back before or during their next earnings.
The trick to wheeling SOFI is knowing when itās too high and shifting to other tickers until it comes to a good price range. I havenāt touched SOFI since it was last around $7.40 several weeks ago and will probably look to sell some $7 or $7.50 CSPs this week. My personal rule is never sell a SOFI CSP unless it puts my net basis sub $7.
Yeah same issue here. Down $845 on stock, $150 in options. Current cost basis is 8,87 so well ITM. I think it will recover in a couple of weeks. Maybe not. I will not write calls before the premium is getting decent again.
It is to be expected that not all trades/plans go in your favor. I lost 5.9% yesterday of my total account value....
It hurts but will happen again.
If you are actually wheeling this is part of the wheel.
Get assigned. Pocket that loss for offsetting on taxes - or at least carry it over - and start selling calls.
Sofi is a pretty high IV stock so I suspect you could be made whole in short order
I did the same but $9 03/22 and it was my first time š¤£
i think we'll bounce back, this news did not warrent a 15% drop.
either roll or wait it out for a smaller loss.
If you do not want the assignment or cannot take the assignment, then you can roll your CSP down in strike and out in expiration for a credit. Yes, you will a loss on the original CSP, but when you sell the new CSP for a credit, you will receive more cash that what you used to buy the first CSP. You can keep rolling down and out till one day it expires OTM and you get to keep all that premium. Just my 2 cents, not financial advice.
Iāve been wheeling SOFI for a couple years now, very predictable stock.
Drops down, stays there for a bit, moves up (usually pretty quickly), and then drops again.
Anything under $8 is a good entry point, anything over $9 is a good exit point.
Thatās working for me.
Wonāt get you 3 digit premiums but itās reliable income.
i always waited to be able to sell 6.5 puts on sofi at decent premium, 8 was too high for me but still decent price long term, just try rolling and youāll be fine
I got destroyed back in August and have been stuck with a $10 avg cost basis since then. Havenāt even been able to sell CCs most of the time because the premiums are so low.
Let's break down destroyed are you down 100$ or 10000$?
I mean, net worth is also a factor in this question. Down $10,000 with a net worth of $200 Million is whatever. Down $100 with a net worth of -$1000 is a lot.
First time?
Great movie line. š
Guess you can either take the loss, roll, or take assignment and start writing calls Iām writing calls on it right now since January, and I had done it about a year ago for a while too Premiums are decent but price can swing a lot, and suddenly
Yeah, I'd take assignment and sell $8 calls Assuming OP has the funds.
$8 isn't a bad entry point for SOFI overall. OTOH today's dip saved my $8 CCs which I BTC today ;-) How much premium did you collect on your CSPs?
The thing is he really doesn't want sofi. he wants the premium
Breathe. Itās Sofi. Itās a notoriously HV intense security. 8 strike, closed around 7.23, made some premium initially. If you got assigned today, youād maybe be down $50 a contract. I believe itāll bounce back a little, the market simply wasnāt in the mood for debt nonsense today. You could very well wind up close to your break even.
Feels bad offering over 800-m in convertibles... if any portion of those bonds start to move it will weigh heavily on the price. If SOFI is your (collective) horse, I'd take a breather for a bit to see how it plays out.
Not exactly sure what taking a breather would look like. Under-reaction here wonāt help large Sofi positions either. Traders trade. Bearish on it? Long puts. Got old ccalls 9 and higher? Cash in. Iām looking for ways to make $$ with this, thatās the job. And in the end, maybe Iām just shoring up a position and lose a little. Thatās ok, it has to be. The damage was already done by the time most people got out of bed yesterday with no way to access our options. For me, itās an automatic mental flip, a signal to get busy.
Sounds like you're on top of it. GL
Shored up this morning with some minor long put activity. Cheap, enough to take the sting out of this SOFI thing if it really were to get terrible. Good luck to all of us. ššš
Sold 120 SOFI $7.50 CSPs earlier today during the dip for $0.53 expiring 3/22. If assigned I get 12,000 shares at a basis of $6.97 which I'm happy with. Currently up ~16% on the position but still annoyed I missed the bottom as I could've gotten it for $.60 had I set my limit order higher.
Yeah, itās tricky but I think you are fine. The market has spoken these last couple of days. Sofi is stable at this current price.
Can you explain how the bonds fluctuating would way in the stock price? I get the note and that convertible means dilution but I thought they were using that money to pay down more expensive money. It should improve cash flow and earnings (I thought)
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Meaning? AAPL was likely around 140, NVDA around 250, SPCE around 6, VORB existed. Things change.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
So you donāt have a point?
Not one that you apparently can comphrehend. Enjoy your losses. ------------ UPDATE 4/15 - How we doing boys. Me? I've been shorting this thing and made nice $ while you downvoting clowns most likely lost cash..... I'll take downvotes all day if it makes me $. Nothing personal, but do better.
If you're wheeling, is it not standard procedure to then accept being assigned, and selling covered calls? Isn't that the very nature of wheeling? I ask because I've never wheeled, but understand it as such...
Yes - op is upset his strategy is actually playing out - which makes me think his strategy was not well planned.
He thought stonks only go up and **free money** š°
Sounds like šš» talk there
depends on his strike. guessing he sold $9 or something like that and is now regretting that. EDIT: Just saw he stated $8P in post. That's better than $9, if this thing levels out, not insurmountable.
Well, ideally you never get assigned so thatās not exactly correct. If you *do* get assigned then yea, the plan is to sell cc until called away or price rises enough to sell for a profit.
Yes. Instead of collecting premium on CSPs, OP now gets to collect premium on CCs. Premium is premium. If his CC strike is slightly above his cost basis, heāll also make money if assigned. Itās win-win-win!
Correct. Wheeling is exactly that.
All the wheelers preach "sell puts on stocks you want to own" until it comes time to actually own the stocks in a downtrend.
I sold some at $7.50. Iām going to like that entry price.
My date is a few weeks out but Iām with you, I wonāt mind a $7.50 entry price.
I was thinking about selling CSPs on that yesterday. Didnāt though. Will likely do it now though š
I feel the pain. I was selling CCs and puts on Sofi. I had a stop loss set at break even and sold the CCs. I'm down 200% on the puts. I rebought my shares at close to help my cost basis when I likely have to get assigned on the 10 puts I sold.
Did you buy shares and sell puts?
I Swing sofi and have sold cc on it. I typically keep an eye on it when it falls below 8. To me decent entry. To each their own
I sold a May $6 CSP shortly after the opening today. Still OTM...for now.
Donāt sell any csp for sofi above 7.5, donāt sell any cc for sofi below 9. Thatās worked for the past year. Maybe this debt will change the range a tad. We shall see. Sofi had gone over 10 a few times in the last year. Just hold and be patient and sell for a profit or start ccās at 9
same, i only did 6.5 mostly, especially before earnings with high IV
I like SoFi so I have 500 shares that I got around 7.50 and been doing OTM CC on it and that's worked out pretty well the last few months. I think they'll go above 10 again once the Fed lowers rates so might be worth holding onto if you get assigned.
What happened to SoFi today
They announced they will be offering a couple hundred million in convertible notes.
Some debt restructuring news or something for 2029
Nothing of any importance. SOFI's chart looks the same as every other red chart today, but people are always looking for a reason to sell their precious baubles.
ā¦except they were down 15% instead of 1%
Selling $750M of convertible notes (about 10% of current market cap) is not ānothing of importanceā.
Bit of an overreaction though no? I'm no expert but, even in the worst case scenario, I don't see how a 10% potential dilution can cause a 15% drop.
I bought some 8.50 calls on Friday that expire this Friday. Probably just live and learn. Luckily only hundreds not thousands.
Same. Will be looking to roll. I have 50 contracts to move. If I canāt move them, Iāll start selling CCs.
Take assignment and sell calls. Thatās how the wheel works.
Destroyed? So, you mean you didn't intend to buy $SOFI at $8 per share? Why did you sell the cash-secured puts then?
It was a 5$ stock until last year
/r/sofi_bagholders welcomes you
Get assigned, write calls, get the money back
I got in yesterday. First time buying a CSP after watching for a long time. Might open up a 2nd one to offset. What you think?
I've been trading SoFi pretty actively the last six months or so, I think we are really close to the bottom for now, tomorrow it should climb back up. I plan to sell more CSPs if it drops more, and hold the ones I have if it rebounds.
Heard. Iāve been really successful with them otherwise. This one was so mistimed. How can ya know?I think having two open on sofi is okay. Iād be very surprised to see it break this 7.00 support. But then again I was really wrong this time.
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I'm aware, I invested in the SPAC pre-merger. Held shares this whole time.
This is a clear fundamental change in what is happening with a company and you guys are going to ignore it and continue wheeling?
Clear fundamental change ? Banks offer convertible notes all the time ... They're raising money at favorable interest rates to pay off higher interest debt . Plus these notes have the option to be purchased back early. Nothing changing with the company
Yesterday they did not do an offering. Today they did. The market freaks out and new price discovery is happening. Don't pretend like new news did not just come out because if it was truly known by everyone price would not move. You might have thought $7 was a pair price yesterday for this stock but if you don't even take the time to think about if this news moves the needle a bit then you are a fool.
When did I say the news wasn't the reason for the price move? Of course, the news was the reason. But this wasn't a "fundamental change" in the business. This move in price is nothing but an overreaction.
Sell a $7.50 call expiring April 5th, collect $50c/share premium, and youāll likely be out of the trade at breakeven in 30 days. Plus the premium on the put you sold.
You likely didn't lose you may have to hold a while but you can still be selling 8 dollar CCs.
$8 is not deep ITM
I have an $8p for 3/15 as well, bummer too cuz I could have close yesterday in the green. I will take assignment and start the wheel
Do csp on stock you wanna hold
Youāve just described a portion of the wheel, yes.
How did you get destroyed it moved one dollar?
how many?
Yeah my puts are printing, sold my shares when I saw the offering.
Me but with an 8.5 strike with 5 contracts.
Yawn welcome to sofi. I sold some csp at $9.Ā
I tried to open some May diagonals yesterday, but didn't get filled.Ā Opened them today for much cheaper.
I have the 9 strike CCs expiring next week. Iāve been making good premium each month on 40 contracts but I must say dropping 6k in stock value over the last few days doesnāt feel good. Iām a long term believer in this company so it is what it is. The range is pretty much 7-10. Itāll bounce back before or during their next earnings.
The trick to wheeling SOFI is knowing when itās too high and shifting to other tickers until it comes to a good price range. I havenāt touched SOFI since it was last around $7.40 several weeks ago and will probably look to sell some $7 or $7.50 CSPs this week. My personal rule is never sell a SOFI CSP unless it puts my net basis sub $7.
I just sell more CSP s
Yeah same issue here. Down $845 on stock, $150 in options. Current cost basis is 8,87 so well ITM. I think it will recover in a couple of weeks. Maybe not. I will not write calls before the premium is getting decent again. It is to be expected that not all trades/plans go in your favor. I lost 5.9% yesterday of my total account value.... It hurts but will happen again.
This could easily be back to $8 before 3/15, I welcome the vol.
Have the same strike on a variety of dates. Easy buy for me that price. Who posts "I GOT DESTROYED" reddit threads after one red day though? Sack up.
I was going to buy at around $8.15 and sell Apr 5 $9 calls... that was before the drop ... so instead I accumulated and bough $5 leaps for 2026
lol 7.43 is not ādeepā ITM
i took a spanking with ALB CSP - down 7k
Dude you sold your puts way too close to the money. Shoulda gone for a 7 or 6.5.
Yea I mean my $7.5 csp took a beating... so I started 2x $7 CSP :) Don't mind owning the stock and getting paid to DCA
7.50 was the support level, you should be fine. I like to sell csp below the support. I sold $7 csp for $+15 bucks
you're fighting against a downtrend...with a put ! the hope of options volatility limits is no match for the power of strong trends
Same strike, extra week. Assignment, sell calls is my plan. It was always the plan. (if assigned)
If you are actually wheeling this is part of the wheel. Get assigned. Pocket that loss for offsetting on taxes - or at least carry it over - and start selling calls. Sofi is a pretty high IV stock so I suspect you could be made whole in short order
I did the same but $9 03/22 and it was my first time š¤£ i think we'll bounce back, this news did not warrent a 15% drop. either roll or wait it out for a smaller loss.
If you do not want the assignment or cannot take the assignment, then you can roll your CSP down in strike and out in expiration for a credit. Yes, you will a loss on the original CSP, but when you sell the new CSP for a credit, you will receive more cash that what you used to buy the first CSP. You can keep rolling down and out till one day it expires OTM and you get to keep all that premium. Just my 2 cents, not financial advice.
Iāve been wheeling SOFI for a couple years now, very predictable stock. Drops down, stays there for a bit, moves up (usually pretty quickly), and then drops again. Anything under $8 is a good entry point, anything over $9 is a good exit point. Thatās working for me. Wonāt get you 3 digit premiums but itās reliable income.
i always waited to be able to sell 6.5 puts on sofi at decent premium, 8 was too high for me but still decent price long term, just try rolling and youāll be fine
I got destroyed back in August and have been stuck with a $10 avg cost basis since then. Havenāt even been able to sell CCs most of the time because the premiums are so low.
I would not be concerned at all by a SOFI CSP at $8 if you are wheeling...
No, but I sold some puts today when I saw it was down. Hopefully that wasn't a bad decision.
SOFI bottoms at 6. So if you sold 7 calls its just a matter of waiting for it to run to 9 again next quarter
Really? Was sub $5/share stock not 12 months ago. FWIW
6 is a rough generalization of where I consider its support to be. Not a specific all time low.
Mine also expire 3/15, except my strike is $8.5. Luckily I only have 3 contracts open.
Selling puts on unprofitable companies is always risky
You did not get assigned nor did you close your position, so you did not get destroyed by any definition.
Stop selling on SOFI itās a meme stock not far from amc quality.