Spotlight on DraftKings: Analyzing the Surge in Options Activity

Whales with a lot of money to spend have taken a noticeably bearish stance on DraftKings.

Looking at options history for DraftKings DKNG we detected 12 trades.

If we consider the specifics of each trade, it is accurate to state that 41% of the investors opened trades with bullish expectations and 58% with bearish.

From the overall spotted trades, 6 are puts, for a total amount of $396,125 and 6, calls, for a total amount of $352,720.

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 $55.0 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 $55.0 in the last 30 days.

DraftKings Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

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 24 states (46% of the U.S. population) and iGaming in seven 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.

Following our analysis of the options activities associated with DraftKings, we pivot to a closer look at the company's own performance.

Present Market Standing of DraftKings

• With a volume of 6,875,270, the price of DKNG is down -0.31% at $41.15.
• RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
• Next earnings are expected to be released in 66 days.

Professional Analyst Ratings for DraftKings

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $50.4.

• An analyst from Susquehanna has decided to maintain their Positive rating on DraftKings, which currently sits at a price target of $51.
• An analyst from Barclays persists with their Equal-Weight rating on DraftKings, maintaining a target price of $41.
• Maintaining their stance, an analyst from Oppenheimer continues to hold a Outperform rating for DraftKings, targeting a price of $55.
• An analyst from Truist Securities downgraded its action to Buy with a price target of $55.
• An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $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.