Weekly Option Windfall: Call Option Spread 'Affirmed' With a 43% Return Potential

Company Overview - Affirm Holdings is a financial technology company that specializes in payment solutions, offering consumers flexible and transparent installment loans by partnering with a diverse range of merchants [1][7] - The company operates a payment network in the United States, Canada, and internationally, with over 337,000 active merchants [7] Recent Developments - Affirm has renewed a multi-year partnership with Shopify, solidifying its position as the exclusive buy now, pay later provider for Shop Pay Installments in the US and Canada, with plans to expand into the UK and other markets [8] Financial Performance - Affirm has a strong earnings history, surpassing earnings estimates in seven of the past eight quarters, with a trailing four-quarter average surprise of 84.1% [9] - In the fiscal second quarter, Affirm reported earnings of $0.23 per share, a 215$0.20, with revenues of $866.38 million exceeding projections by 7.7$0.09 per share, reflecting a growth of 79.1% year-over-year [11] Industry Position - Affirm is part of the Zacks Financial Transaction Services industry group, which ranks in the top 33% out of over 250 industries, indicating expected outperformance over the next 3 to 6 months [3][6] - The industry group shows favorable metrics, including a PE (F1) of 16.00 compared to the iShares-SP500's 18.93, and a projected EPS growth of 15.14% versus 7.36% for the broader market [5]