Skillz Inc. (SKLZ) Unusual Options Activity and Social Media Squeeze Chatter

Skillz Inc. (SKLZ) Unusual Options Activity and Social Media Squeeze Chatter

10:29am ET: We’ve already discussed a couple of heavily shorted stocks who saw massive hikes in their social media presence, followed by massive spikes in their stock prices. Most notable of these are Vinco Ventures (BBIG)-- which ran as high as $11.19 yesterday before coming down to close around $9.42 (which is still a massive 231% climb in the last 5 days); and Support .com (SPRT), with an immense run that took the stock price from the $6.20 to $8 range in early August to a high of $53.72 on August 27th, before pulling back to settle in the mid-to-high 20s. SPRT currently sits at an astounding +230% in the last 30 days. Now, some are eyeballing Skillz Inc. (SKLZ).

Skillz Inc. is a mobile gaming platform that focuses on connecting mobile games players through tournaments and community engagement. Recently, though, Skillz has seen a different type of community engagement on social media; namely Reddit and Twitter. Over the last 48 hours, SKLZ worked its way into the Most Mentions list, pictured below, coming in second only to SPY.

SKLZ comes in at #2 most mentioned on Reddit for the last 48 hours

All this hype revolves around the idea that SKLZ is the next big squeeze candidate, among others on this list shared by unusual_whales (some of which have already seen significant movement).

In a recent article, Unusual Whales already examined options activity and dark pool order flow for SKLZ, revealing a bullish outlook both in the past, for the present, and for the future. As the social media presence of SKLZ rose, we could also observe another spike in Options Activity for SKLZ. Take the morning of 9/1 for example.

Ask-Side Options flow on 9/1 for SKLZ, $25k+ premium

The vast majority of ask-side orders yesterday reflect an expectation for SKLZ to rise, with consistent volume throughout the morning.

During today’s morning session, SKLZ pulled back very slightly at open, and has since held the level around yesterday’s close price, which was $12.22. Options flow during and following that dip, (which touched as low as $11.84), shows the same tale, with ask-side call orders vastly outpacing bearish flow, with a heavy focus on slightly in-the-money and out-of-the-money strikes.

Ask-Side Options flow, 9/2; $7.5k+ premium

So will Skillz Inc. experience a squeeze? Will it follow the pattern BBIG and SPRT followed within the last two weeks? I can’t say. But what I can say is that the flow reflects bullish expectations, and we will be watching with bated breath to see what happens.