Affirm is Setting Up for a Breakout ($AFRM)

We’ve been bullish on the point-of-sale loan provider, Affirm (AFRM), since late April of this year -- Thanks to a recently-announced partnership with eCommerce giant Amazon (AMZN), we’re already up +75% from our entry, but AFRM shares look set to break even higher.

Underlying consumer demand is still showing significant strength, trending +31% QoQ and +87% YoY.

Furthermore, the stock price is consolidating higher, after gapping up by more than +30% on the company's last earnings report.

From a technical standpoint, there’s a lot to like about the current setup -- Options flow in recent weeks adds further credence to a bullish outlook, with highly unusual call buying seen in strikes near and slightly out of the money (10/1 expiry).