Investors with a lot of money to spend have taken a bullish 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 9 uncommon options trades for DraftKings.
This isn't normal.
The overall sentiment of these big-money traders is split between 55% bullish and 44%, bearish.
Out of all of the special options we uncovered, 3 are puts, for a total amount of $105,740, and 6 are calls, for a total amount of $277,395.
Projected Price Targets
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $30.0 and $45.0 for DraftKings, spanning the last three months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for DraftKings options trades today is 3911.0 with a total volume of 718.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for DraftKings's big money trades within a strike price range of $30.0 to $45.0 over the last 30 days.
DraftKings Option Volume And Open Interest Over 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 | TRADE | BEARISH | 12/19/25 | $14.1 | $14.0 | $14.0 | $30.00 | $70.0K | 489 | 50 |
| DKNG | CALL | SWEEP | BULLISH | 07/19/24 | $1.28 | $1.24 | $1.28 | $40.00 | $58.7K | 9.8K | 111 |
| DKNG | CALL | SWEEP | BEARISH | 06/28/24 | $0.49 | $0.47 | $0.47 | $41.00 | $51.9K | 690 | 120 |
| DKNG | PUT | TRADE | BEARISH | 01/17/25 | $9.6 | $9.45 | $9.55 | $45.00 | $45.8K | 2.0K | 48 |
| DKNG | CALL | SWEEP | BULLISH | 08/16/24 | $3.2 | $3.15 | $3.2 | $38.00 | $40.6K | 2.6K | 3 |
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.
Current Position of DraftKings
- Trading volume stands at 1,205,239, with DKNG's price up by 0.27%, positioned at $37.66.
- RSI indicators show the stock to be may be approaching oversold.
- Earnings announcement expected in 55 days.
What Analysts Are Saying About DraftKings
In the last month, 5 experts released ratings on this stock with an average target price of $55.8.
- Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $60.
- An analyst from Oppenheimer persists with their Outperform rating on DraftKings, maintaining a target price of $60.
- Consistent in their evaluation, an analyst from UBS keeps a Buy rating on DraftKings with a target price of $60.
- Consistent in their evaluation, an analyst from Susquehanna keeps a Positive rating on DraftKings with a target price of $49.
- An analyst from Stifel has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $50.
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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