Investors with a lot of money to spend have taken a bearish 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 10 uncommon options trades for DraftKings.
This isn't normal.
The overall sentiment of these big-money traders is split between 40% bullish and 50%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $63,590, and 8 are calls, for a total amount of $694,710.
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 $35.0 to $41.0 for DraftKings over the last 3 months.
Analyzing 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 $35.0 to $41.0 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 | 09/20/24 | $3.6 | $3.55 | $3.55 | $38.00 | $314.1K | 387 | 2.1K |
| DKNG | CALL | SWEEP | BULLISH | 09/20/24 | $3.3 | $3.15 | $3.25 | $38.00 | $158.2K | 387 | 10 |
| DKNG | CALL | SWEEP | BULLISH | 11/15/24 | $4.45 | $4.4 | $4.45 | $38.00 | $48.0K | 644 | 0 |
| DKNG | CALL | SWEEP | BEARISH | 09/20/24 | $3.6 | $3.55 | $3.55 | $38.00 | $42.6K | 387 | 2.1K |
| DKNG | CALL | SWEEP | NEUTRAL | 07/19/24 | $0.53 | $0.49 | $0.51 | $41.00 | $41.3K | 8.1K | 864 |
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.
In light of the recent options history for DraftKings, it's now appropriate to focus on the company itself. We aim to explore its current performance.
Present Market Standing of DraftKings
- Currently trading with a volume of 3,487,632, the DKNG's price is up by 1.78%, now at $37.77.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 34 days.
What The Experts Say On DraftKings
4 market experts have recently issued ratings for this stock, with a consensus target price of $53.5.
- An analyst from Guggenheim has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $52.
- Maintaining their stance, an analyst from Wells Fargo continues to hold a Overweight rating for DraftKings, targeting a price of $53.
- An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $60.
- An analyst from Susquehanna has decided to maintain their Positive rating on DraftKings, which currently sits at a price target of $49.
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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