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 8 options trades for DraftKings. This is not a typical pattern.
The sentiment among these major traders is split, with 62% bullish and 25% bearish. Among all the options we identified, there was one put, amounting to $54,625, and 7 calls, totaling $732,909.
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 $34.0 to $47.5 for DraftKings over the last 3 months.
Insights into Volume & Open Interest
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in DraftKings's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to DraftKings's substantial trades, within a strike price spectrum from $34.0 to $47.5 over the preceding 30 days.
DraftKings Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| 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 | $9.3 | $9.15 | $9.25 | $47.00 | $209.0K | 46 | 233 |
| DKNG | CALL | SWEEP | BEARISH | 05/24/24 | $0.5 | $0.47 | $0.47 | $47.50 | $190.6K | 277 | 5.0K |
| DKNG | CALL | SWEEP | BULLISH | 05/17/24 | $0.28 | $0.25 | $0.28 | $46.50 | $113.5K | 10.9K | 5.2K |
| DKNG | CALL | TRADE | BULLISH | 11/15/24 | $13.85 | $13.55 | $13.85 | $34.00 | $83.1K | 10 | 60 |
| DKNG | CALL | TRADE | BULLISH | 05/17/24 | $0.3 | $0.29 | $0.3 | $46.50 | $70.4K | 10.9K | 10.2K |
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 or retail sports betting in 27 states and iGaming in seven states, 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.
Having examined the options trading patterns of DraftKings, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Current Position of DraftKings
- Trading volume stands at 2,665,119, with DKNG's price down by -0.4%, positioned at $45.97.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 77 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 $53.2.
- Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on DraftKings with a target price of $51.
- An analyst from BTIG has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $55.
- Reflecting concerns, an analyst from Benchmark lowers its rating to Buy with a new price target of $50.
- Consistent in their evaluation, an analyst from Barclays keeps a Overweight rating on DraftKings with a target price of $54.
- An analyst from Susquehanna persists with their Positive rating on DraftKings, maintaining a target price of $56.
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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