DoorDash, DraftKings: What Levels Could These Soaring Stocks Hit Brakes Next Week?

Shares of DraftKings Inc. DKNG and DoorDash Inc. DASH have seen a significant surge this year.

DraftKings: Shares of DraftKings, a sports betting company, have risen over 61% since the beginning of 2023. The company reported a revenue of $855 million for the quarter-ended December, registering an increase of 81% compared to $473 million during the same period in 2021.

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The stock closed at $17.81 on Thursday. Options market data indicates professional traders seem to be betting the $20-level to be a stiff resistance in the near term. The maximum open interest on the Call side for options expiring on Feb. 24 is concentrated at this level with 3,547 contracts.

Another good build-up can be seen at the $17.5 level, indicating the stock could see some resistance at this mark. However, if it continues to trade above this level next week, the $20 resistance could be reinforced.

On the downside, the $15-mark is witnessing a build-up of open interest on the Put side and can be seen as a near-term support.

DoorDash: Shares of the company surged over 38% this year. The company reported a 40% year-over-year increase in revenue at $1.81 billion, above analyst estimates of $1.77 billion, according to Benzinga Pro data.

The stock closed at $66.89 on Thursday and is witnessing open interest build-up at the $70-mark on the Call side for options expiring on Feb. 24. This level could be considered as a resistance in the short-term. However, on the downside, there hasn't been significant build-up of open interest at any one level at the time of writing.

It is noteworthy that open interest levels only provide a fair idea of market expectations of support and resistance. The levels could change if the stock moves significantly on the back of strong macro or corporate news.

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