I bought 200 shares of Skillz (SKLZ) on 6/7/21 at $22.70. I bought this stock because it is a stock loved by Cathie Wood. Cathie Wood is one of the largest investors in the world. I bought the stock at $22.70 and today it’s at $14.30. This just shows you that you must do your own homework. You cannot rely on anyone, not even a huge guru.
I’m really ready to capitulate on this one. But I decided to sell Calls that are In-the-Money just to grab some premium to offset my loss. I sold 2 SKLZ 8/6/21 $16 Calls for a premium of 45¢ for $90. With this stock I’ll continue to sell In-the-Money Calls until I get assigned which will probably be with a loss. I’m ready to move on and use the money elsewhere.
Sell to Open 2 SKLZ 8/6/21 $16.00 C @ 45¢ (+$90)
This is a 9 day Call. I’m taking in a return of 1.9%. If I get assigned I’ll take a loss on the stock which I’m willing to do. Sometimes you have to make moves like this to get out of the crap you’re holding.
Successful trading,
Steve
The Options Coach