SoFi Is Preparing to Roll Out Options Trading -- It Could Be a Big Deal

In SoFi Technologies' (NASDAQ: SOFI) most recent earnings call, CFO Chris Lapointe said the company's online brokerage would soon roll out options trading, which will give investors the right to buy or sell a stock at a certain price by a certain date. SoFi is a big company with lots of financial products, including loans, cash management accounts, personal budgeting tools, and more. Because of that diversity of offerings, it might not seem like it, but this feature within the SoFi Invest brokerage could be a big deal. Let me explain.

In case you didn't know, an option is, essentially, a bet on a stock hitting a certain price -- up or down -- by a certain date. For example, if you think a stock that's trading at $40 a share in March might hit $50 or more by July, you can buy "call options" on that stock to make that bet. Each option involves 100 shares, so if the stock exceeds $50 a share, known as the strike price, you are set to make some nice gains because it involves multiple shares.

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Source Fool.com