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 20% leaning bullish and 50% bearish. Among these notable options, 2 are puts, totaling $149,838, and 8 are calls, amounting to $347,325.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $17.5 to $38.0 for DraftKings over the recent three months.
Analyzing Volume & Open Interest
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 whale trades within a strike price range from $17.5 to $38.0 in the last 30 days.
DraftKings Option Activity Analysis: Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| DKNG | CALL | TRADE | BEARISH | 12/18/26 | $12.0 | $9.7 | $9.7 | $38.00 | $96.9K | 108 | 100 |
| DKNG | PUT | SWEEP | BEARISH | 08/15/25 | $5.95 | $5.85 | $5.95 | $33.00 | $89.2K | 272 | 150 |
| DKNG | CALL | TRADE | BULLISH | 08/16/24 | $3.25 | $2.4 | $3.25 | $30.00 | $65.0K | 6.2K | 0 |
| DKNG | PUT | SWEEP | BULLISH | 01/17/25 | $6.0 | $5.9 | $5.94 | $37.00 | $60.5K | 5.4K | 103 |
| DKNG | CALL | TRADE | BEARISH | 08/16/24 | $3.45 | $3.25 | $3.3 | $30.00 | $41.2K | 6.2K | 325 |
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.
Following our analysis of the options activities associated with DraftKings, we pivot to a closer look at the company's own performance.
Present Market Standing of DraftKings
- With a volume of 3,456,426, the price of DKNG is up 5.3% at $33.76.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 77 days.
What Analysts Are Saying About DraftKings
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $51.4.
- An analyst from Macquarie has decided to maintain their Outperform rating on DraftKings, which currently sits at a price target of $52.
- Consistent in their evaluation, an analyst from Benchmark keeps a Buy rating on DraftKings with a target price of $41.
- An analyst from Truist Securities persists with their Buy rating on DraftKings, maintaining a target price of $50.
- In a cautious move, an analyst from Needham downgraded its rating to Buy, setting a price target of $60.
- Maintaining their stance, an analyst from Goldman Sachs continues to hold a Buy rating for DraftKings, targeting a price of $54.
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 want to stay updated on the latest options trades for DraftKings, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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