High-rolling investors have positioned themselves bearish 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 10 options trades for DraftKings. This is not a typical pattern.
The sentiment among these major traders is split, with 40% bullish and 60% bearish. Among all the options we identified, there was one put, amounting to $152,020, and 9 calls, totaling $396,073.
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 $37.0 and $70.0 for DraftKings, spanning the last three months.
Volume & Open Interest Development
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 $37.0 to $70.0 over the preceding 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 | PUT | SWEEP | BULLISH | 08/16/24 | $8.05 | $7.65 | $7.6 | $45.00 | $152.0K | 728 | 200 |
| DKNG | CALL | SWEEP | BULLISH | 01/17/25 | $3.3 | $3.2 | $3.3 | $45.00 | $85.1K | 14.3K | 454 |
| DKNG | CALL | TRADE | BEARISH | 07/26/24 | $1.22 | $0.98 | $1.01 | $41.00 | $51.7K | 9 | 1 |
| DKNG | CALL | TRADE | BULLISH | 09/20/24 | $4.65 | $4.6 | $4.65 | $37.00 | $51.1K | 454 | 117 |
| DKNG | CALL | SWEEP | BEARISH | 06/28/24 | $2.0 | $1.98 | $2.0 | $37.00 | $45.4K | 3.4K | 1.7K |
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.
Where Is DraftKings Standing Right Now?
- Currently trading with a volume of 3,418,464, the DKNG's price is up by 0.08%, now at $38.08.
- RSI readings suggest the stock is currently may be approaching oversold.
- Anticipated earnings release is in 51 days.
Expert Opinions on DraftKings
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $55.8.
- An analyst from UBS has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $60.
- Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for DraftKings, targeting a price of $49.
- Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $60.
- An analyst from Stifel persists with their Buy rating on DraftKings, maintaining a target price of $50.
- Consistent in their evaluation, an analyst from Oppenheimer keeps a Outperform rating on DraftKings with 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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Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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