High-rolling investors have positioned themselves bullish on DraftKings DKNG, and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in DKNG often signals that someone has privileged information.
Today, Benzinga's options scanner spotted 16 options trades for DraftKings. This is not a typical pattern.
The sentiment among these major traders is split, with 50% bullish and 50% bearish. Among all the options we identified, there was one put, amounting to $39,690, and 15 calls, totaling $1,299,748.
Projected Price Targets
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $25.0 to $50.0 for DraftKings during the past quarter.
Volume & Open Interest Development
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 $25.0 to $50.0 in the last 30 days.
DraftKings 30-Day Option Volume & Interest Snapshot
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| DKNG | CALL | SWEEP | BULLISH | 06/21/24 | $45.00 | $398.0K | 3.5K | 938 |
| DKNG | CALL | TRADE | BULLISH | 05/17/24 | $32.00 | $281.2K | 902 | 250 |
| DKNG | CALL | SWEEP | BEARISH | 02/16/24 | $34.00 | $140.2K | 2.2K | 456 |
| DKNG | CALL | TRADE | BEARISH | 01/17/25 | $47.00 | $69.5K | 1.6K | 106 |
| DKNG | CALL | TRADE | BEARISH | 08/16/24 | $45.00 | $54.2K | 228 | 1.1K |
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.
Current Position of DraftKings
- Currently trading with a volume of 7,377,493, the DKNG's price is down by -0.26%, now at $41.48.
- RSI readings suggest the stock is currently may be overbought.
- Anticipated earnings release is in 10 days.
Professional Analyst Ratings for DraftKings
A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $38.666666666666664.
- In a cautious move, an analyst from Exane BNP Paribas downgraded its rating to Underperform, setting a price target of $28.
- An analyst from Stifel has elevated its stance to Buy, setting a new price target at $45.
- Reflecting concerns, an analyst from BMO Capital lowers its rating to Outperform with a new price target of $43.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for DraftKings with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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