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 8 uncommon options trades for DraftKings.
This isn't normal.
The overall sentiment of these big-money traders is split between 37% bullish and 50%, bearish.
Out of all of the special options we uncovered, 3 are puts, for a total amount of $146,659, and 5 are calls, for a total amount of $241,804.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $25.0 to $38.0 for DraftKings during the past quarter.
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 $25.0 to $38.0 over the preceding 30 days.
DraftKings Option Volume And Open Interest Over Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| DKNG | CALL | TRADE | BEARISH | 03/21/25 | $7.5 | $7.0 | $7.0 | $35.00 | $70.0K | 229 | 0 |
| DKNG | CALL | SWEEP | BULLISH | 08/02/24 | $1.54 | $1.5 | $1.54 | $38.00 | $69.4K | 1.0K | 548 |
| DKNG | PUT | SWEEP | NEUTRAL | 08/02/24 | $1.82 | $1.75 | $1.82 | $36.00 | $65.1K | 1.1K | 375 |
| DKNG | CALL | TRADE | BEARISH | 03/21/25 | $7.4 | $7.35 | $7.35 | $35.00 | $51.4K | 229 | 100 |
| DKNG | PUT | SWEEP | BEARISH | 08/02/24 | $1.73 | $1.69 | $1.72 | $36.00 | $42.8K | 1.1K | 892 |
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.
Present Market Standing of DraftKings
- With a trading volume of 3,435,176, the price of DKNG is down by -1.1%, reaching $35.9.
- Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
- Next earnings report is scheduled for 3 days from now.
Expert Opinions on DraftKings
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $54.6.
- An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $60.
- An analyst from Barclays has decided to maintain their Overweight rating on DraftKings, which currently sits at a price target of $53.
- Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for DraftKings, targeting a price of $50.
- Consistent in their evaluation, an analyst from Macquarie keeps a Outperform rating on DraftKings with a target price of $52.
- An analyst from Oppenheimer has decided to maintain their Outperform rating on DraftKings, which currently sits at a price target of $58.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest DraftKings options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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