SKLZ - An Excellent Dip BuyMarch 8 - Wolfpack Research released a short report. The stock price fell about -11% on the day.
March 18 - Public offering of 32,000,000 shares. The stock price fell about -9%.
SKLZ has been heavily beaten down, currently sitting at roughly 60% down from all time highs.
Cathie Wood/ Ark Invest added 745,700 shares to their position on Thursday, March 25, totaling just over 6 million shares.
I am long on this stock for a few reasons.
1) Cathie Wood has picked BANGER stocks, over and over again. I followed her into BNGO, and NNDM early. She hasn't let me down so far.
2) Every action in the stock market is an overreaction. The short report, stacked with the offering, has brought this stock to the ground. I'll ride it right back up.
3) From a technical perspective, SKLZ is sitting on the 200EMA on the daily chart. This is a significant support level. In addition, it is also sitting on the 0.786 fib level, which is another important level of support. This leads me to believe that the ~$18 level could very well be the bottom.
I'm buying shares Monday morning, 3/29.
I will also be looking to get into a long call calendar spread.
BTO $25 8/20 c @ 3.15
STO $25 4/16 c @ 0.65
Total cost - 2.50 or $250.
