FVRR

Fiverr: Massive Run-Up, Growth, Selling Put Options

Fiverr (FVRR) is a global marketplace connecting freelancers and businesses for their digital service needs. The business was already growing rapidly, and now growth has been accelerated by the pandemic as high unemployment and alternative working needs have driven people to the platform. The share price has increased rapidly (see chart below), and some investors are nervous, especially considering heightened volatility expectations as we head into the US election season. Rather than purchasing shares outright, the extremely high upfront premium income available in the options market (for selling puts) is compelling because it gives us a chance to own the shares at a significantly lower price, and we get to keep that extremely high upfront income, no matter what.