Deep-pocketed investors have adopted a bullish 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 32 extraordinary options activities for DraftKings. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 50% leaning bullish and 50% bearish. Among these notable options, 2 are puts, totaling $76,020, and 30 are calls, amounting to $2,449,761.
What's The Price Target?
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $25.0 to $65.0 for DraftKings during the past quarter.
Volume & Open Interest Trends
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 $25.0 to $65.0 in the last 30 days.
DraftKings Call and Put Volume: 30-Day Overview
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| DKNG | CALL | TRADE | BEARISH | 09/20/24 | $55.00 | $954.0K | 76 | 2.0K |
| DKNG | CALL | SWEEP | BULLISH | 08/16/24 | $65.00 | $279.6K | 842 | 1.5K |
| DKNG | CALL | SWEEP | BULLISH | 04/19/24 | $47.00 | $132.6K | 3.9K | 1 |
| DKNG | CALL | TRADE | BULLISH | 05/17/24 | $45.00 | $113.7K | 8.6K | 205 |
| DKNG | CALL | SWEEP | BULLISH | 04/19/24 | $47.00 | $87.0K | 3.9K | 1 |
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 U.S. population) and iGaming in seven states (11% of U.S.), 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.
DraftKings's Current Market Status
- Currently trading with a volume of 4,435,817, the DKNG's price is up by 1.92%, now at $48.23.
- RSI readings suggest the stock is currently may be overbought.
- Anticipated earnings release is in 37 days.
Expert Opinions on DraftKings
5 market experts have recently issued ratings for this stock, with a consensus target price of $53.8.
- An analyst from UBS has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $56.
- An analyst from Susquehanna persists with their Positive rating on DraftKings, maintaining a target price of $54.
- Reflecting concerns, an analyst from Mizuho lowers its rating to Buy with a new price target of $58.
- An analyst from Morgan Stanley persists with their Overweight rating on DraftKings, maintaining a target price of $49.
- In a cautious move, an analyst from JMP Securities downgraded its rating to Market Outperform, setting a price target 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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