I made this trade a little while ago and didn’t get time to post it. Skillz (SKLZ) is a Tech stock involved in games. It’s a Kathie Wood stock and it had a high volume of option buying. I paid $22.70 but the stock dropped back a little. If you like the stock I think it can be a good Grasshopper opportunity now. The stock is at $22.08. If you can get it for $22 I think it can be a good candidate for an At-the-Money Call or even a Deep In-the-Money Covered Call selling the $21 Call. I was trying to do a Deep In-the-Money Call be it started to drop so I sold the $23 Call for a premium of $1.40. This is a return of 6%.
Buy 200 Shares SKLZ @ $22.70
Sell to Open 2 SKLZ 6/11/21 $23.00 C @ $1.40 (+$280)
As I’m writing the stock is moving back up. Put your thinking cap on if you like it.
Successful trading,
Steve
The Options Coach