Deep-pocketed investors have adopted a bearish approach towards DraftKings DKNG, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in DKNG usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 11 extraordinary options activities for DraftKings. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 45% leaning bullish and 54% bearish. Among these notable options, 6 are puts, totaling $377,748, and 5 are calls, amounting to $257,122.
Predicted Price Range
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $28.0 to $55.0 for DraftKings during the past quarter.
Analyzing Volume & Open Interest
In today's trading context, the average open interest for options of DraftKings stands at 1096.91, with a total volume reaching 12,722.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in DraftKings, situated within the strike price corridor from $28.0 to $55.0, throughout the last 30 days.
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 | PUT | SWEEP | BEARISH | 09/20/24 | $8.65 | $8.55 | $8.65 | $43.00 | $128.8K | 346 | 149 |
| DKNG | PUT | SWEEP | BEARISH | 06/07/24 | $0.65 | $0.64 | $0.65 | $34.00 | $90.3K | 460 | 11.5K |
| DKNG | CALL | TRADE | BULLISH | 03/21/25 | $4.95 | $4.7 | $4.85 | $40.00 | $76.1K | 213 | 157 |
| DKNG | PUT | SWEEP | BEARISH | 11/15/24 | $4.2 | $4.15 | $4.2 | $35.00 | $69.7K | 2.0K | 193 |
| DKNG | CALL | SWEEP | BULLISH | 05/16/25 | $5.5 | $5.4 | $5.5 | $40.00 | $68.7K | 626 | 128 |
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.
Following our analysis of the options activities associated with DraftKings, we pivot to a closer look at the company's own performance.
DraftKings's Current Market Status
- With a trading volume of 8,041,656, the price of DKNG is down by -1.23%, reaching $35.38.
- Current RSI values indicate that the stock is may be approaching oversold.
- Next earnings report is scheduled for 62 days from now.
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 $58.4.
- An analyst from Needham has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $60.
- An analyst from Jefferies has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $54.
- Consistent in their evaluation, an analyst from Oppenheimer keeps a Outperform rating on DraftKings with a target price of $60.
- In a cautious move, an analyst from Needham downgraded its rating to Buy, setting a price target of $58.
- An analyst from UBS persists with their Buy rating on DraftKings, maintaining a target price of $60.
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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