Deep-pocketed investors have adopted a bearish approach towards DraftKings DKNG, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in DKNG usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 8 extraordinary options activities for DraftKings. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 37% leaning bullish and 62% bearish. Among these notable options, 3 are puts, totaling $125,407, and 5 are calls, amounting to $290,250.
Projected Price Targets
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $25.0 to $45.0 for DraftKings over the recent three months.
Volume & Open Interest Trends
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for DraftKings's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across DraftKings's significant trades, within a strike price range of $25.0 to $45.0, over the past month.
DraftKings Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| DKNG | CALL | SWEEP | BULLISH | 01/16/26 | $3.95 | $3.75 | $3.95 | $45.00 | $99.1K | 7.1K | 250 |
| DKNG | CALL | SWEEP | BULLISH | 01/16/26 | $4.0 | $3.8 | $4.0 | $45.00 | $83.2K | 7.1K | 500 |
| DKNG | PUT | SWEEP | BEARISH | 11/15/24 | $8.9 | $8.8 | $8.9 | $39.00 | $57.8K | 696 | 65 |
| DKNG | CALL | TRADE | BEARISH | 11/15/24 | $5.1 | $4.25 | $4.25 | $30.00 | $42.5K | 473 | 100 |
| DKNG | PUT | SWEEP | BULLISH | 02/21/25 | $11.5 | $11.45 | $11.45 | $41.00 | $37.7K | 174 | 209 |
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 25 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.
Having examined the options trading patterns of DraftKings, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
DraftKings's Current Market Status
- Trading volume stands at 3,843,151, with DKNG's price up by 1.73%, positioned at $30.66.
- RSI indicators show the stock to be may be approaching oversold.
- Earnings announcement expected in 84 days.
Professional Analyst Ratings for DraftKings
In the last month, 5 experts released ratings on this stock with an average target price of $50.2.
- An analyst from Truist Securities persists with their Buy rating on DraftKings, maintaining a target price of $53.
- Consistent in their evaluation, an analyst from Truist Securities keeps a Buy rating on DraftKings with a target price of $50.
- Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for DraftKings, targeting a price of $47.
- Consistent in their evaluation, an analyst from Benchmark keeps a Buy rating on DraftKings with a target price of $41.
- Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new 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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