As one of the most popular financial technology (fintech) enterprises, SoFi Technologies (SOFI) naturally commands attention. Therefore, when shares stumbled Monday, options traders appeared to have zeroed in on the contrarian opportunity. In the trailing month, SOFI stock gave up 20% of equity value, seemingly presenting good value for the bulls.
However, prospective traders should be careful about jumping aboard the fintech giant. While circumstances initially appeared auspicious earlier this year, SOFI stock hasn’t looked that great over the past 365 days, losing 31% of value. Moreover, the company could face a longer-term headwind that levers the possibility of a sharp correction.
