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 positions 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.
Today, Benzinga's options scanner spotted 8 options trades for DraftKings.
This isn't normal.
The overall sentiment of these big-money traders is split between 25% bullish and 75%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $80,940, and 7, calls, for a total amount of $649,711.
Predicted Price Range
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $37.0 to $44.0 for DraftKings over the last 3 months.
Volume & Open Interest Trends
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 $37.0 to $44.0 over the preceding 30 days.
DraftKings Option Volume And Open Interest Over 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 | SWEEP | BEARISH | 12/20/24 | $1.44 | $1.27 | $1.27 | $43.00 | $220.5K | 40.6K | 5.0K |
| DKNG | CALL | SWEEP | BEARISH | 12/20/24 | $1.37 | $1.3 | $1.31 | $43.00 | $98.4K | 40.6K | 1.7K |
| DKNG | CALL | SWEEP | BULLISH | 12/20/24 | $1.34 | $1.33 | $1.34 | $43.00 | $96.0K | 40.6K | 716 |
| DKNG | PUT | SWEEP | BEARISH | 11/15/24 | $2.7 | $2.66 | $2.69 | $37.50 | $80.9K | 34 | 300 |
| DKNG | CALL | SWEEP | BEARISH | 12/20/24 | $1.36 | $1.3 | $1.3 | $43.00 | $63.0K | 40.6K | 2.0K |
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.
Following our analysis of the options activities associated with DraftKings, we pivot to a closer look at the company's own performance.
Where Is DraftKings Standing Right Now?
- Currently trading with a volume of 474,549, the DKNG's price is up by 0.18%, now at $37.23.
- RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
- Anticipated earnings release is in 16 days.
What Analysts Are Saying About DraftKings
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $53.2.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Reflecting concerns, an analyst from BMO Capital lowers its rating to Outperform with a new price target of $48. * In a cautious move, an analyst from Benchmark downgraded its rating to Buy, setting a price target of $44. * Consistent in their evaluation, an analyst from Mizuho keeps a Outperform rating on DraftKings with a target price of $62. * Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $60. * An analyst from Wells Fargo persists with their Overweight rating on DraftKings, maintaining a target price of $52.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for DraftKings with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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