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 22 uncommon options trades for DraftKings.
This isn't normal.
The overall sentiment of these big-money traders is split between 40% bullish and 36%, bearish.
Out of all of the special options we uncovered, 6 are puts, for a total amount of $364,815, and 16 are calls, for a total amount of $805,303.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $30.0 to $55.0 for DraftKings over the recent three months.
Analyzing Volume & Open Interest
In terms of liquidity and interest, the mean open interest for DraftKings options trades today is 3043.38 with a total volume of 21,199.00.
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 $55.0 over the last 30 days.
DraftKings 30-Day Option Volume & Interest Snapshot
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 | 08/16/24 | $0.42 | $0.16 | $0.42 | $30.00 | $176.7K | 3.0K | 21 |
| DKNG | CALL | TRADE | BULLISH | 06/18/26 | $9.9 | $9.35 | $9.9 | $45.00 | $155.4K | 292 | 0 |
| DKNG | CALL | TRADE | NEUTRAL | 11/15/24 | $3.05 | $2.95 | $3.0 | $45.00 | $94.2K | 5.3K | 489 |
| DKNG | CALL | TRADE | BEARISH | 08/16/24 | $1.6 | $1.54 | $1.56 | $42.00 | $76.1K | 1.7K | 688 |
| DKNG | PUT | SWEEP | BEARISH | 01/16/26 | $9.65 | $9.5 | $9.65 | $42.00 | $55.0K | 92 | 0 |
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.
Current Position of DraftKings
- Currently trading with a volume of 12,818,122, the DKNG's price is down by -5.02%, now at $38.0.
- RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
- Anticipated earnings release is in 37 days.
What Analysts Are Saying About 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 $56.4.
- In a cautious move, an analyst from Needham downgraded its rating to Buy, setting 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.
- Maintaining their stance, an analyst from Wells Fargo continues to hold a Overweight rating for DraftKings, targeting a price of $53.
- Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $60.
- An analyst from Oppenheimer has decided to maintain their Outperform rating on DraftKings, which currently sits at a price target of $60.
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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Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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