Investors with a lot of money to spend have taken a bullish 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 62% bullish and 37%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $101,742, and 6 are calls, for a total amount of $212,853.
Projected Price Targets
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $35.0 and $50.0 for DraftKings, spanning the last three months.
Insights into Volume & Open Interest
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
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 activity within a strike price range from $35.0 to $50.0 in the last 30 days.
DraftKings 30-Day Option Volume & Interest Snapshot
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 | BEARISH | 01/15/27 | $16.5 | $16.05 | $16.4 | $37.00 | $70.5K | 104 | 43 |
| DKNG | PUT | SWEEP | BULLISH | 03/21/25 | $7.85 | $7.75 | $7.75 | $50.00 | $68.9K | 327 | 0 |
| DKNG | CALL | SWEEP | BULLISH | 11/29/24 | $10.1 | $7.45 | $8.64 | $35.00 | $35.0K | 68 | 35 |
| DKNG | PUT | SWEEP | BULLISH | 01/17/25 | $4.3 | $4.2 | $4.2 | $47.00 | $32.7K | 1.7K | 0 |
| DKNG | CALL | SWEEP | BULLISH | 01/17/25 | $0.77 | $0.73 | $0.77 | $50.00 | $28.8K | 11.1K | 725 |
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 about 30 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.
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.
Current Position of DraftKings
- Trading volume stands at 3,724,875, with DKNG's price down by -0.3%, positioned at $42.93.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 78 days.
What The Experts Say On DraftKings
5 market experts have recently issued ratings for this stock, with a consensus target price of $55.2.
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. * An analyst from TD Cowen persists with their Buy rating on DraftKings, maintaining a target price of $55. * An analyst from Macquarie has decided to maintain their Outperform rating on DraftKings, which currently sits at a price target of $51. * Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $60. * An analyst from Barclays persists with their Overweight 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.
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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