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 28 options trades for DraftKings. This is not a typical pattern.
The sentiment among these major traders is split, with 60% bullish and 25% bearish. Among all the options we identified, there was one put, amounting to $57,200, and 27 calls, totaling $1,165,752.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $16.0 to $60.0 for DraftKings over the last 3 months.
Volume & Open Interest Trends
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for DraftKings's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across DraftKings's significant trades, within a strike price range of $16.0 to $60.0, over the past month.
DraftKings Option Volume And Open Interest Over Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| DKNG | CALL | TRADE | BEARISH | 01/17/25 | $2.21 | $2.16 | $2.17 | $60.00 | $107.6K | 7.3K | 3.0K |
| DKNG | CALL | SWEEP | NEUTRAL | 04/26/24 | $0.31 | $0.24 | $0.31 | $40.50 | $67.7K | 320 | 53 |
| DKNG | CALL | SWEEP | BULLISH | 05/17/24 | $0.36 | $0.34 | $0.35 | $50.00 | $64.9K | 10.0K | 140 |
| DKNG | PUT | SWEEP | BEARISH | 08/15/25 | $11.15 | $10.3 | $11.0 | $45.00 | $57.2K | 0 | 54 |
| DKNG | CALL | SWEEP | BULLISH | 01/17/25 | $2.19 | $2.06 | $2.19 | $60.00 | $54.7K | 7.3K | 2.9K |
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 US population) and iGaming in seven states (11% of US), 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.
In light of the recent options history for DraftKings, it's now appropriate to focus on the company itself. We aim to explore its current performance.
DraftKings's Current Market Status
- Trading volume stands at 3,051,770, with DKNG's price down by -1.63%, positioned at $40.19.
- RSI indicators show the stock to be may be approaching oversold.
- Earnings announcement expected in 7 days.
What Analysts Are Saying About DraftKings
In the last month, 5 experts released ratings on this stock with an average target price of $54.0.
- Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for DraftKings, targeting a price of $52.
- Reflecting concerns, an analyst from Benchmark lowers its rating to Buy with a new price target of $50.
- An analyst from JP Morgan persists with their Overweight rating on DraftKings, maintaining a target price of $55.
- An analyst from Needham persists with their Buy rating on DraftKings, maintaining a target price of $58.
- An analyst from MoffettNathanson persists with their Buy rating on DraftKings, maintaining a target price of $55.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for DraftKings, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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