New Covered Call on Skillz stock (NYSE:SKLZ) - Potential income return +4.4% in 1 day

On May 06, 2021, we sold 1 covered call on SKLZ stock expiring on May 07, 2021 (1DTE). For this trade, we got a, $30 premium (before commissions)

I sold this covered call just shortly buying 100 shares at $15.11. I also made a YouTube video, explaining why I’m making this trade, check it out:

here is our trade setup:

  • SLD 1 SKLZ May 07 '21 15.5 Call Option 0.30 USD

what can happen next:

SKLZ is trading below our strike price of $15 .5 at the expiry date (May 07, 2021), in this case, we keep the premium and sell more covered calls to lower our cost basis. 

In case the SKLZ stock is trading above our strike price of $15.5, our 100 shares get called away at the strike price of $15.5, and we realize our max gain +$66.6 or 4.4% potential return of income in just 1 day

Break-even: $14.84