Investors with a lot of money to spend have taken a bearish stance on DraftKings DKNG.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with DKNG, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 21 uncommon options trades for DraftKings.
This isn't normal.
The overall sentiment of these big-money traders is split between 47% bullish and 52%, bearish.
Out of all of the special options we uncovered, 12 are puts, for a total amount of $532,691, and 9 are calls, for a total amount of $512,989.
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 $39.0 to $50.0 for DraftKings over the last 3 months.
Analyzing 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 $39.0 to $50.0 in the last 30 days.
DraftKings Call and Put Volume: 30-Day Overview
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 | SWEEP | BULLISH | 05/16/25 | $8.8 | $8.65 | $8.75 | $45.00 | $120.7K | 105 | 0 |
| DKNG | CALL | SWEEP | BULLISH | 05/10/24 | $2.3 | $2.27 | $2.31 | $43.00 | $79.3K | 500 | 916 |
| DKNG | PUT | SWEEP | BEARISH | 03/21/25 | $11.7 | $11.55 | $11.7 | $50.00 | $73.7K | 0 | 68 |
| DKNG | CALL | SWEEP | BULLISH | 05/10/24 | $2.3 | $2.27 | $2.29 | $43.00 | $68.8K | 500 | 484 |
| DKNG | PUT | SWEEP | BULLISH | 05/10/24 | $1.61 | $1.58 | $1.6 | $40.00 | $66.6K | 287 | 456 |
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.
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.
Where Is DraftKings Standing Right Now?
- With a trading volume of 2,731,774, the price of DKNG is down by -1.38%, reaching $42.19.
- Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
- Next earnings report is scheduled for 2 days from now.
What The Experts Say On DraftKings
5 market experts have recently issued ratings for this stock, with a consensus target price of $53.6.
- Maintaining their stance, an analyst from Morgan Stanley continues to hold a Overweight rating for DraftKings, targeting a price of $50.
- Reflecting concerns, an analyst from Goldman Sachs lowers its rating to Buy with a new price target of $60.
- An analyst from Benchmark has revised its rating downward to Buy, adjusting the price target to $50.
- An analyst from Susquehanna persists with their Positive rating on DraftKings, maintaining a target price of $56.
- An analyst from Barclays has decided to maintain their Overweight rating on DraftKings, which currently sits at a price target of $52.
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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