SKLZ Butterfly Strategy
SKLZ (Skillz Inc.), in the Communication Services sector, (Electronic Gaming & Multimedia industry), listed on NYSE.
Skillz Inc. operates a mobile game platform in the United States, Israel, China, Malta, Hong Kong, Cyprus, and internationally. The company operates in two segments, Skillz and Aarki. It offers an eSports gaming platform, which enables game developers to monetize content through multi-player competition. The company provides advertising solutions for mobile app developers. It distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in Las Vegas, Nevada.
SKLZ (Skillz Inc.) trades in the Communication Services sector, specifically Electronic Gaming & Multimedia, with a market capitalization of approximately $138.0M, a beta of 4.58 versus the broader market, a 52-week range of 2.23-20, average daily share volume of 1.3M, a public-listing history dating back to 2020, approximately 323 full-time employees. These structural characteristics shape how SKLZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.58 indicates SKLZ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on SKLZ?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
Current SKLZ snapshot
As of June 29, 2026, spot at $8.86, ATM IV 151.90%, expected move 43.55%. The butterfly on SKLZ below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 53-day expiry.
Why this butterfly structure on SKLZ specifically: IV rank is unavailable in the current snapshot, so regime-based timing for SKLZ is inferred from ATM IV at 151.90% alone, with a market-implied 1-standard-deviation move of approximately 43.55% (roughly $3.86 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SKLZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SKLZ should anchor to the underlying notional of $8.86 per share and to the trader's directional view on SKLZ stock.
SKLZ butterfly setup
The SKLZ butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SKLZ near $8.86, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SKLZ chain at a 53-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 SKLZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.00 | $2.86 |
| Sell 2 | Call | $9.00 | $2.36 |
| Buy 1 | Call | $9.00 | $2.36 |
SKLZ butterfly risk and reward
- Net Premium / Debit
- -$49.50
- Max Profit (per contract)
- $50.50
- Max Loss (per contract)
- -$49.50
- Breakeven(s)
- $8.50
- Risk / Reward Ratio
- 1.020
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
SKLZ butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on SKLZ. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | -$49.50 |
| $1.97 | -77.8% | -$49.50 |
| $3.93 | -55.7% | -$49.50 |
| $5.88 | -33.6% | -$49.50 |
| $7.84 | -11.5% | -$49.50 |
| $9.80 | +10.6% | +$50.50 |
| $11.76 | +32.7% | +$50.50 |
| $13.72 | +54.8% | +$50.50 |
| $15.67 | +76.9% | +$50.50 |
| $17.63 | +99.0% | +$50.50 |
When traders use butterfly on SKLZ
Butterflies on SKLZ are pinning bets - traders use them when they expect SKLZ to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
SKLZ thesis for this butterfly
The market-implied 1-standard-deviation range for SKLZ extends from approximately $5.00 on the downside to $12.72 on the upside. A SKLZ long call butterfly is a pinning play: it pays maximum at the middle strike if SKLZ settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Communication Services name, SKLZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SKLZ-specific events.
SKLZ butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. SKLZ positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SKLZ alongside the broader basket even when SKLZ-specific fundamentals are unchanged. Always rebuild the position from current SKLZ chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on SKLZ?
- A butterfly on SKLZ is the butterfly strategy applied to SKLZ (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With SKLZ stock trading near $8.86, the strikes shown on this page are snapped to the nearest listed SKLZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SKLZ butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the SKLZ butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 151.90%), the computed maximum profit is $50.50 per contract and the computed maximum loss is -$49.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SKLZ butterfly?
- The breakeven for the SKLZ butterfly priced on this page is roughly $8.50 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current SKLZ market-implied 1-standard-deviation expected move is approximately 43.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on SKLZ?
- Butterflies on SKLZ are pinning bets - traders use them when they expect SKLZ to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current SKLZ implied volatility affect this butterfly?
- Current SKLZ ATM IV is 151.90%; IV rank context is unavailable in the current snapshot.