Someone with a lot of money to spend (and possibly insider knowledge) has taken an unusually bullish stance on DraftKings.
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with DKNG, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 26 uncommon options trades for DraftKings DKNG. The overall sentiment shows 50.0% of the big-money traders are bullish on the stock and 50.0%, bearish. Out of all of the special options found by our algorithm, 6 are puts, for a total amount of $2,771,690 and 20, calls, for a total amount of $3,016,326.
Volume & Open Interest Development
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for DraftKings's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of DraftKings's smart money trades within a strike price range from $35.0 to $70.0 in the last 30 days. In red, the open interest, in blue, the volume, and in green the volume/open interest.
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| DKNG | CALL | SWEEP | BULLISH | 08/27/21 | $53.00 | $162.7K | 13.4K | 11.8K |
| DKNG | CALL | SWEEP | BEARISH | 08/27/21 | $55.00 | $146.7K | 21.4K | 7.6K |
| DKNG | CALL | SWEEP | BULLISH | 08/27/21 | $53.00 | $160.2K | 13.4K | 6.0K |
| DKNG | CALL | SWEEP | BULLISH | 09/17/21 | $55.00 | $268.8K | 12.4K | 3.5K |
| DKNG | PUT | SWEEP | BULLISH | 10/15/21 | $70.00 | $838.4K | 5.2K | 1.5K |
Where Is DraftKings Standing Right Now?
- With a volume of 6,057,064, the price of DKNG is up 4.76% over the last 24 hours at $55.86.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 80 days.
What The Experts Say On DraftKings:
- Morgan Stanley has decided to maintain their Overweight rating on DraftKings, which currently sits at a price target of $60.0.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely. If you are already an options trader or would like to get started, head on over to Benzinga Pro. Benzinga Pro gives you up-to-date news and analytics to empower your investing and trading strategy.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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