Today I closed two put option contracts on Skillz (SKLZ) and another on Trupanion (TRUP). The TRUP contract (strike: $55; expiration: 21MAY2021) was active for 21 days and netted $108.63 or 2% of the required capital to collateralize the trade. I like TRUP as a play on humanizing pets and plan to add more exposure to the company when the opportunity presents itself.
The two SKLZ contracts (strike: $13.50; expiration: 30APR21) were open just four days but netted 3.2%, $87.25, on just $2,700 capital. SKLZ has had wild ride of late and rallied after a severe downfall during which we were distributed 300 shares. Unfortunately the rally over the past three sessions have exceeded the strike price of the three covered-call contracts I sold at the outset of the rally. I like the company’s long-term potential but we’ve experienced extreme volatility of late. Hopefully the volatility proves profitable.