Deep-pocketed investors have adopted a bearish approach towards DraftKings DKNG, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in DKNG usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 12 extraordinary options activities for DraftKings. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 33% leaning bullish and 66% bearish. Among these notable options, 3 are puts, totaling $215,902, and 9 are calls, amounting to $1,006,174.
Expected Price Movements
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $18.0 to $40.0 for DraftKings over the last 3 months.
Insights into Volume & Open Interest
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for DraftKings's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of DraftKings's whale activity within a strike price range from $18.0 to $40.0 in the last 30 days.
DraftKings Option Volume And Open Interest Over Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| DKNG | CALL | SWEEP | BEARISH | 03/15/24 | $35.00 | $622.1K | 5.2K | 2.2K |
| DKNG | PUT | TRADE | BULLISH | 01/19/24 | $38.00 | $134.0K | 1.2K | 1.0K |
| DKNG | CALL | SWEEP | BEARISH | 03/15/24 | $35.00 | $110.0K | 5.2K | 394 |
| DKNG | CALL | SWEEP | BEARISH | 01/19/24 | $36.00 | $59.5K | 7.7K | 864 |
| DKNG | PUT | SWEEP | NEUTRAL | 02/16/24 | $39.00 | $45.2K | 607 | 300 |
About DraftKings
DraftKings got its start in 2012 as an innovator in daily fantasy sports. Then, following a Supreme Court ruling in 2018 that allowed states to legalize online sports wagering, the company expanded into online sports and casino gambling, where it generally holds the number two or three revenue share position across states in which it competes. DraftKings is now live with online sports betting in 21 states (44% of the U.S. population) and iGaming in five states (11% of U.S.), with both products available to around 40% of Canada's population. The company also operates a non-fungible token commissioned-based marketplace and develops and licenses online gaming products.
After a thorough review of the options trading surrounding DraftKings, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
DraftKings's Current Market Status
- Currently trading with a volume of 6,755,447, the DKNG's price is up by 6.13%, now at $37.22.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 28 days.
Professional Analyst Ratings for DraftKings
In the last month, 2 experts released ratings on this stock with an average target price of $46.5.
- An analyst from BMO Capital downgraded its action to Outperform with a price target of $43.
- Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $50.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest DraftKings options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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