Investors with a lot of money to spend have taken a bearish stance on DraftKings DKNG.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with DKNG, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 8 uncommon options trades for DraftKings.
This isn't normal.
The overall sentiment of these big-money traders is split between 12% bullish and 75%, bearish.
Out of all of the special options we uncovered, 3 are puts, for a total amount of $158,366, and 5 are calls, for a total amount of $338,450.
Expected Price Movements
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $15.0 to $43.0 for DraftKings over the last 3 months.
Insights into Volume & Open Interest
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in DraftKings's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to DraftKings's substantial trades, within a strike price spectrum from $15.0 to $43.0 over the preceding 30 days.
DraftKings Option Volume And Open Interest Over 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 | CALL | SWEEP | NEUTRAL | 12/20/24 | $4.7 | $4.6 | $4.7 | $41.00 | $141.0K | 962 | 300 |
| DKNG | CALL | TRADE | BEARISH | 09/27/24 | $2.2 | $1.94 | $2.03 | $39.50 | $101.4K | 1.6K | 39 |
| DKNG | PUT | SWEEP | BEARISH | 12/20/24 | $4.5 | $4.45 | $4.45 | $43.00 | $67.1K | 450 | 212 |
| DKNG | PUT | SWEEP | BEARISH | 09/27/24 | $0.55 | $0.39 | $0.55 | $42.00 | $64.0K | 3.2K | 1.1K |
| DKNG | CALL | TRADE | BEARISH | 10/04/24 | $1.62 | $1.3 | $1.3 | $41.50 | $39.0K | 474 | 305 |
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.
In light of the recent options history for DraftKings, it's now appropriate to focus on the company itself. We aim to explore its current performance.
Current Position of DraftKings
- Trading volume stands at 4,421,200, with DKNG's price up by 1.05%, positioned at $41.53.
- RSI indicators show the stock to be may be overbought.
- Earnings announcement expected in 35 days.
Professional Analyst Ratings for DraftKings
5 market experts have recently issued ratings for this stock, with a consensus target price of $56.0.
Turn $1000 into $1270 in just 20 days?
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. * 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 UBS continues to hold a Buy rating for DraftKings, targeting a price of $58. * Consistent in their evaluation, an analyst from JP Morgan keeps a Overweight rating on DraftKings with a target price of $54. * An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $60. * Consistent in their evaluation, an analyst from Susquehanna keeps a Positive rating on DraftKings with a target price of $48.
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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