SoFi has strong fundamentals and growth but a flat stock price, creating a favorable opportunity for the wheel strategy.

If you want to retire and have a monthly income , you can look at SoFi and the Wheel Strategy. In this video, I will talk about Sofai, which is a good quality company. Although it is not performing very well at the moment, it is a great opportunity for wheel strategy.

Look, currently, the share price of Sofi is $15.76. I will do a technical analysis of it so that you can understand why I want to invest in Sofi and what strike prices I am choosing for the wheel strategy.

First, the wheel strategy begins with the sale of a put option. I see that the price of sofas has dropped a lot. The stock hasn't had a great time in the last 6 months, but honestly, if I remove the Bollinger Bands and moving averages, you'll see that the stock hasn't really done anything.

The stock's performance has been nothing to speak of. This red line shows that the sofa is still where it was 6 months ago. Although it has gone up and down , it hasn't actually gone anywhere.

This is disappointing for some investors. However, this is a great joy for me and my community , because it is easier to profit in a wheel strategy when the stock is stable in one place.

The current price of Sofi is $15.77. I will show you how to sell a put option and what strike price I choose to start the wheel strategy.

What I like about Sofie is that they have 15.8 million members , which is 35% more than the previous year. They are growing at an incredibly fast pace, but that is not reflected in the stock price.

But the interesting thing is that their products or services increased by 42% to 24.4 million. Now 51% of users of the new product are current Sofai members. This means that anyone entering their funnel or ecosystem is actually getting a better experience and they seem to be opening new products and doing more business with Sofie.

If you are an investor in a business , what more could you ask for? You definitely want your customers to have a good experience , and Sofai delivers exactly that.

Now, their growth is also reflected in real financial results. So, when you look at consolidated revenue, it reached a record 1.2 billion and consolidated EBITDA reached 358 million.

And SoFi products, generated another $ 157 million in GAAP net income.

So, these are some of the financial metrics that I want to bring to you, because there's a big discrepancy between what investors are seeing, what Wall Street is seeing, and what stocks are actually doing.

And I see a great opportunity for investors to sell premiums.

And honestly, this might sound a little crazy, but I might even go for an in-the-money option. And the reason for this is that when I look at the current technicals, SOFAI is trading well below its long-term trading price.

So, if I add Bollinger Bands here right now, you'll see that Sophie is at the very bottom of her Bollinger Bands. The chances of it falling any lower are very low. And actually, I think Sofa will be between $ 17 and $18 per share in a very short period of time.

So, I'm actually expecting short-term growth because I think the stock is currently oversold in the short term , okay?

We have an earnings release date of October 27, so that will be an important day, but I think the stock could recover a bit before then because it already looks very cheap. You can see that the price has risen very strongly from $15 per share.

This happened at the end of last July. So, the stock rose from below $15 to around $19 at the end of last July. So, now we're seeing prices come down again, and we think this is a great opportunity.

So, what I'm going to do is sell a 'put option' , and I'm looking at something in-the-money because look at this. That $111 you see on the screen, that's the premium you get if you sell a put option, right ?

Which is actually quite a large and impressive number. If I calculate in this example , that's about a 7 percent premium on the capital that I'm collecting. This is, for lack of a better word , very interesting, okay ?

I find this to be a very interesting opportunity.

So, what happens is, if SoFi turns around and goes above $16, which is n't much, just a few percent increase for the stock, you do n't have to take the shares and you just get the premium.

So, paying premium is a big deal. Obviously, if you can do this for many months, it will have a big compounding effect, which will grow your portfolio quite nicely , to put it simply.

But if it's below $16 and you have to take the shares, here's what happens. In practice, selling puts should be seen as a way to reduce your average cost. So, think about it. If you collect $1.11 and your strike price is $16 , that effectively brings your average cost down to $ 15 per share , right ?

Because if the strike price is $16 and the premium is $11 cents, it's basically like $14.89 cents. Robinhood is showing $14.86, but it's actually $ 14.89. So, if you have to take shares, that will be your effective average cost.

So, if the sofa is $ 15.76, great. You have to take the shares within 30 days , right ? At the end of the term, you will be given 100 shares per contract and your average cost will be $ 14.89 cents.

Think about it now. The stock is now at $15.76. So, it is a very cost-effective way to collect premiums by using capital to invest in a good quality company.

Sofi is growing its customer base very quickly because their marketing is so excellent, and once someone becomes a customer , their LTV or lifetime value is incredibly strong. This means that when someone starts with something cheap, like opening a bank account or checking account , they end up making more transactions later.

They borrow from SoFi, use SoFi Invest, etc., which makes customers much more valuable in the long-term planning of the business. So, we will see a lot of cash flow from Sofa in the future.

But the truth is that the sofa just moves up and down and doesn't reach anywhere. So, by selling the options as I show , the premium I get on the capital is about 7%. Really. This is something you do n't usually see in a very volatile stock market.

So, where else can you find something that is actually like that ? Because in most cases, you will see some hype stocks that are very volatile. They look very promising. But at the end of the day, what is the true value of the company fundamentally?

All these hype stocks have no real value and can cause you big losses in the long run. And Sophie can do the same , right? There are some risks to this company that they may not be able to perform well or be effective.

But from what I see from the fundamentals of the business and their business model , especially their banking charter and the huge amount of money they have, they do n't have to go to any third party to borrow.

They are doing everything internally. So, their system is incredibly efficient and I'm very optimistic about this business that it could be a $ 20 to $25 stock sometime in 2027.

But for me, it does n't even need to be, because with the wheel strategy , if I sell a put option at $16 , I get a nice premium.

Okay, if it's above 16, great , you know, that's fine. You have collected premium. If it's below 16, you'll be assigned , okay? So, let's say we're assigned , right? So, let's move from selling puts to selling call options , okay ?

Let's pretend you've just been assigned , okay? And Sophie is now under 16, so this is a perfect example. So, Sophie is now under 16, you are assigned , your average cost is 14.89 as we saw, right?

Great, you've already seen the face of profit. You're already about a dollar in profit, right ? About a dollar. So, now you have to decide , my average cost was 14.89, my strike price was 16, what should I do now ?

How will I continue to earn, generate income, fund my retirement life, or build wealth for retirement? Well, don't think about anything else except selling a call option. That 's all.

You sell puts to get in, that's your entry, now you sell calls to get out , and that's your exit, right ? So, look, sell the call option , okay? We will choose the same expiration date of one month later because we are pretending that we have been recently assigned , in this example.

So, look, what do I do? Well, I'll go straight back to 16. So, we sold the 16 put , our effective average cost is 14.89. Now, we can only sell call options. Look, if I sell a call option at a strike price of 16, there's a premium of $96.

Again, our effective average cost is $ 14.89 and our effective exit is now $16.96, right? Or $16.98 depending on the bid-ask spread.

Let me enlarge this option right here, okay? I want you to just look at this. Bid and Ask are really very close. This is great. Sophie's options are really liquid or readily available.

You can see that there is open interest of 1,800 options and the volume is 412. It has a lot of liquidity. This means that many people are trading Sophie Options. This is a great cheap stock and a great business as well.

And again, since the stock is hanging in the same place , I'm continuing to make videos on YouTube because for those of you who are n't part of my Discord community, yes, I'm giving you this information later.

Look, I'm trying my best to educate as many people as possible online for free , but if you're not using the wheel strategy on SoFi on a regular basis, you're really missing out.

In fact, every Monday in my Discord community I tell all the students, "SoFi is awesome. So is American Airlines, Walmart."

And the best income strategies I'm seeing right now, which I've been using literally for months and years, are on SoFi. Now, I don't get any money from SoFi , I'm not sponsored.

You can find other opportunities in the stock market. I'm just mentioning an opportunity that I see in the market. So, you can do whatever you want with this information. I hope this video was very helpful to you.

If you want more videos like this with special updates on wheel strategy or sofa stocks , be sure to subscribe to this channel , see you in the next video.