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 10 extraordinary options activities for DraftKings. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 40% leaning bullish and 60% bearish. Among these notable options, 4 are puts, totaling $155,737, and 6 are calls, amounting to $207,717.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $23.0 to $50.0 for DraftKings over the last 3 months.
Analyzing Volume & Open Interest
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 $23.0 to $50.0, over the past month.
DraftKings 30-Day Option Volume & Interest Snapshot
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| DKNG | PUT | SWEEP | BEARISH | 11/15/24 | $6.45 | $6.45 | $6.45 | $46.00 | $54.1K | 372 | 84 |
| DKNG | PUT | SWEEP | BEARISH | 05/16/25 | $4.6 | $4.5 | $4.6 | $38.00 | $44.1K | 300 | 109 |
| DKNG | CALL | SWEEP | BULLISH | 05/17/24 | $4.8 | $4.7 | $4.8 | $40.00 | $43.6K | 5.2K | 222 |
| DKNG | CALL | SWEEP | BULLISH | 05/17/24 | $4.85 | $4.75 | $4.8 | $40.00 | $38.8K | 5.2K | 469 |
| DKNG | CALL | SWEEP | BULLISH | 05/17/24 | $4.8 | $4.75 | $4.8 | $40.00 | $37.4K | 5.2K | 230 |
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 sports betting in 24 states (46% of the US population) and iGaming in seven states (11% of US), 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.
Present Market Standing of DraftKings
- With a trading volume of 5,581,709, the price of DKNG is down by -0.14%, reaching $44.01.
- Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
- Next earnings report is scheduled for 86 days from now.
Professional Analyst Ratings for DraftKings
5 market experts have recently issued ratings for this stock, with a consensus target price of $54.4.
- Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for DraftKings, targeting a price of $56.
- An analyst from Barclays persists with their Overweight rating on DraftKings, maintaining a target price of $54.
- In a cautious move, an analyst from Benchmark downgraded its rating to Buy, setting a price target of $50.
- An analyst from Goldman Sachs downgraded its action to Buy with a price target of $60.
- Maintaining their stance, an analyst from Benchmark continues to hold a Buy rating for DraftKings, targeting a price of $52.
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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