Skillz (SKLZ) is a newly public company that provides a new platform model for game developers to and players. For a modest fee players can play mobile games without intrusive advertising while avoiding pay-to-win model. Developers are duly compensated and players have a chance to win money for strong gameplay. This was what I gathered from the recommendation in our newsletter.
We earned a 4% return on previous put option contracts we closed 19MAR2021 but, as you can see the above chart, over the past month, SKLZ has followed the same downward trajectory as many other newly public companies. Our three contracts (strike: $17.50; expiration: 16APR2021) expired in the money last Friday when we could have bought three hundred shares of SKLZ for $15.11. To calculate the return for the trade, we subtract the difference paid for our 300 shares from the market value, $717, from the premium for which we sold the contracts, $147.93. We lost $569.07 or 10.8% on these contracts.
Source: MarketWatch.com
I like the long-term prospects for the business and plan to write call options on at least 200 of the shares we own.