SoFi Technologies Is Up 200%+ Since April. What Its Chart SaysSoFi Technologies, Inc.BATS:SOFImoomooFinancial platform SOFI has gained more than 200% since its April near-term low and some 240% over the past 12 months. Where does its chart say it can go from here? Let's check it out: SoFi's Fundamental Analysis "Noto with the tackle." I can remember those words ringing down over and over again years ago from the PA at West Point's Michie Stadium when Anthony Noto -- now SoFi's CEO -- was a college-football player for the U.S. Military Academy. He was a middle linebacker in the late 1980s, and I remember him well from that era. I didn't go to West Point, but am a big fan of Army football and a long-time season-ticket holder. Yes, I enlisted in the Marine Corps out of high school, but my dad was an Army officer, and I grew up rooting for the Army team in college sports. (I would eventually end up in the Army as a National Guard member many, many years later after a 22-year break in service.) I've been impressed with Noto ever since I became aware of him decades ago. He was aggressive as a college-football player. He was all over the field. Easy to root for. And decades later, he's running perhaps the most well-known U.S. online financial-services company. But does that make for a good stock? Let's look first at SOFI's financials. The company last reported results on July 29 for Q2, and should report Q3 numbers in about a month. For Q2, SoFi posted $0.08 in GAAP earnings per share on $854.9 million of total revenue (or $858.2 million of adjusted net revenue). These top and bottom-line numbers all beat analyst expectations quite decisively. They also compared quite well to $0.01 for the year-ago period while reflecting year-over-year revenue growth of 43% GAAP and 44% adjusted. Fee-based revenue was up 72% to $378 million, while membership increased by 34% to 11.7 million people and product growth gained 34%. The firm's business units all did well, but its Financial Services division really moved the football. Financial Services generated $362.5 million of net revenue (+106% year over year). That drove a segment-contribution profit of $188.2 million (up 241% y/y) on a 52% contribution margin, up from 31% a year earlier. Separately, SOFI's technology platform generated net revenue of $109.6 million (+15% y/y). This produced a segment-contribution profit of $33.2 million (+7% year over year) on a contribution margin that dropped from 33% to 30%. Meanwhile, lending generated $443.5 million of net revenue, up 30% from the same period last year. That produced a segment-contribution profit of $244.7 million (+24%) on a contribution margin that dropped from 58% to 55%. As for the current period, the Street is looking for SoFi to report $0.08 of Q3 GAAP EPS on about $880.2 million in revenue. Those results would compare to $0.05 GAAP EPS a year ago, while showing 27% in year-over-year revenue growth. Of the 10 sell-side analysts that I am aware of that cover SOFI, all of them have revised their Q3 earnings estimates higher since the period began. SoFi's Technical Analysis Here we have SOFI's year-to-date chart running through Wednesday afternoon: Readers will see that SOFI developed an "inverse head-and-shoulders" pattern of bullish reversal with a $15 pivot this past spring, as marked with a red jagged lines and pink shaded area above. That set-up generated a breakout and upward-sloping trend illustrated here by an Andrews' Pitchfork model (the purple lines and purple-shaded area at the chart's right). The stock is currently struggling with breaking out beyond this pitchfork model's upper trendline. Now let's look even closer by zooming in on just SOFI's past five months running through Wednesday afternoon: Towards the top of that pitchfork (which I removed so as to declutter the chart), the stock formed an "ascending triangle" (a bullish pattern of continuance) with a $27 pivot. This is denoted by the black lines at the above chart's right. Meanwhile, SoFi's Relative Strength Index (or "RSI," the gray line at the chart's top) is quite robust, but isn't quite at the point of expressing a technically overbought condition. Similarly, the daily Moving Average Convergence Divergence indication (or "MACD," denoted by a black and gold line and blue bars at the chart's bottom) is postured bullishly, with all three components of that item well above zero. That said, the histogram of the 9-day Exponential Moving Average (or "EMA," marked with blue bars) appears to have rounded. Still, the 12-day EMA (the black line) remains above the 26-day EMA (the gold line). That's considered bullish. However, both of those lines have turned downward, and the 12-day line looks like it could meet and potentially cross below the 26-day line. That would be a bearish signal. Options Options Options traders who are bullish on SoFi might choose to employ a "buy-write" set-up in this scenario. This strategy, also known as a "covered call," involves buying shares of the stock and selling an equivalent amount of calls. Here's an example: -- Purchase 100 shares of SOFI at or close to $26. -- Sell (write) one Oct. 31 $33 call for about $0.50. This call will likely expire after SOFI has released Q3 earnings. Selling the call will reduce the trader's net basis to $25.50. There's no downside protection, but there's an artificially created lower entry point. If the shares are called away at $33, the trader will recognize a 29.4% profit. Conversely, options traders who are bearish might consider a bear-put spread. This can be set up by buying a put while simultaneously selling a second put at a lower strike price. Here's an example: -- Purchase one Oct. 31 $25 put for about $1.65. -- Sell (write) one Oct. 31 $22 put for roughly $0.65. Traders in this example will have gotten a bear-put spread for a $1 net debit, which is also the maximum theoretical loss on this set-up. The trader is spending $1 to try to receive $3 -- a 200% potential profit. (Moomoo Technologies Inc. Markets Commentator Stephen “Sarge” Guilfoyle was long SOFI at the time of writing this column.) This article discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. Moomoo and its affiliates make no representation or warranty as to the article's adequacy, completeness, accuracy or timeliness for any particular purpose of the above content. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct. Options trading is risky and not appropriate for everyone. Read the Options Disclosure Document (https://j.moomoo.com/017y9J) before trading. Options are complex and you may quickly lose the entire investment. Supporting docs for any claims will be furnished upon request. Options trading subject to eligibility requirements. Strategies available will depend on options level approved. Maximum potential loss and profit for options are calculated based on the single leg or an entire multi-leg trade remaining intact until expiration with no option contracts being exercised or assigned. These figures do not account for a portion of a multi-leg strategy being changed or removed or the trader assuming a short or long position in the underlying stock at or before expiration. Therefore, it is possible to lose more than the theoretical max loss of a strategy. Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. In the U.S., investment products and services on Moomoo are offered by Moomoo Financial Inc., Member FINRA/SIPC. TradingView is an independent third party not affiliated with Moomoo Financial Inc., Moomoo Technologies Inc., or its affiliates. Moomoo Financial Inc. and its affiliates do not endorse, represent or warrant the completeness and accuracy of the data and information available on the TradingView platform and are not responsible for any services provided by the third-party platform.