Deep-pocketed investors have adopted a bullish 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 11 extraordinary options activities for DraftKings. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 63% leaning bullish and 36% bearish. Among these notable options, 2 are puts, totaling $100,412, and 9 are calls, amounting to $342,492.
Projected Price Targets
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $35.0 to $55.0 for DraftKings over the recent three months.
Insights into Volume & Open Interest
In today's trading context, the average open interest for options of DraftKings stands at 4090.89, with a total volume reaching 7,165.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in DraftKings, situated within the strike price corridor from $35.0 to $55.0, throughout the last 30 days.
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 | PUT | SWEEP | BULLISH | 11/15/24 | $1.12 | $1.11 | $1.12 | $35.00 | $68.5K | 3.8K | 727 |
| DKNG | CALL | SWEEP | BULLISH | 11/15/24 | $0.76 | $0.73 | $0.76 | $45.00 | $53.1K | 13.9K | 1.9K |
| DKNG | CALL | SWEEP | BULLISH | 06/18/26 | $6.35 | $5.0 | $5.25 | $55.00 | $40.4K | 2.1K | 152 |
| DKNG | CALL | TRADE | BEARISH | 10/18/24 | $4.05 | $3.95 | $3.98 | $35.00 | $39.8K | 1.9K | 201 |
| DKNG | CALL | TRADE | BULLISH | 06/18/26 | $5.3 | $5.05 | $5.25 | $55.00 | $39.3K | 2.1K | 75 |
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.
After a thorough review of the options trading surrounding DraftKings, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
DraftKings's Current Market Status
- Currently trading with a volume of 5,686,772, the DKNG's price is up by 2.29%, now at $38.51.
- RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
- Anticipated earnings release is in 20 days.
What The Experts Say On DraftKings
5 market experts have recently issued ratings for this stock, with a consensus target price of $50.2.
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20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Wells Fargo has decided to maintain their Overweight rating on DraftKings, which currently sits at a price target of $52. * Maintaining their stance, an analyst from Mizuho continues to hold a Outperform rating for DraftKings, targeting a price of $62. * Reflecting concerns, an analyst from Benchmark lowers its rating to Buy with a new price target of $44. * An analyst from BMO Capital downgraded its action to Outperform with a price target of $48. * An analyst from Barclays persists with their Overweight rating on DraftKings, maintaining a target price of $45.
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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