Decoding DraftKings's Options Activity: What's the Big Picture?

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 9 uncommon options trades for DraftKings.

This isn't normal.

The overall sentiment of these big-money traders is split between 55% bullish and 44%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $182,850, and 4 are calls, for a total amount of $188,879.

Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $20.0 to $50.0 for DraftKings during the past quarter.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for DraftKings options trades today is 2038.44 with a total volume of 2,993.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for DraftKings's big money trades within a strike price range of $20.0 to $50.0 over the last 30 days.

DraftKings Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
DKNG CALL SWEEP BULLISH 06/21/24 $2.08 $2.04 $2.08 $50.00 $80.7K 11.7K 552
DKNG PUT TRADE BULLISH 12/19/25 $3.8 $3.7 $3.7 $30.00 $58.4K 231 0
DKNG CALL TRADE BULLISH 01/17/25 $25.55 $25.3 $25.55 $20.00 $51.1K 1.5K 20
DKNG PUT SWEEP BEARISH 04/26/24 $1.23 $1.2 $1.23 $43.50 $36.9K 110 1.0K
DKNG PUT SWEEP BEARISH 04/19/24 $2.94 $2.87 $2.91 $47.00 $32.3K 418 1.3K

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 US population) and iGaming in seven states (11% of US), 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

  • With a volume of 3,440,635, the price of DKNG is down -2.54% at $43.8.
  • RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
  • Next earnings are expected to be released in 15 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 $54.4.

  • An analyst from Susquehanna has decided to maintain their Positive rating on DraftKings, which currently sits at a price target of $54.
  • An analyst from Morgan Stanley has decided to maintain their Overweight rating on DraftKings, which currently sits at a price target of $50.
  • An analyst from JP Morgan persists with their Overweight rating on DraftKings, maintaining a target price of $55.
  • Consistent in their evaluation, an analyst from MoffettNathanson keeps a Buy rating on DraftKings with a target price of $55.
  • Consistent in their evaluation, an analyst from Needham keeps a Buy rating on DraftKings with a target price of $58.

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.

Market News and Data brought to you by Benzinga APIs
Date of Trade
Strike Price
Posted In: OptionsMarketsBZI-UOA
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