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 16 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, 4 are puts, for a total amount of $230,242, and 12 are calls, for a total amount of $781,379.
Projected Price Targets
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $20.0 to $55.0 for DraftKings over the recent three months.
Analyzing Volume & Open Interest
In terms of liquidity and interest, the mean open interest for DraftKings options trades today is 1032.2 with a total volume of 1,547.00.
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 $55.0 over the last 30 days.
DraftKings Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| DKNG | CALL | SWEEP | BULLISH | 09/20/24 | $6.5 | $6.4 | $6.5 | $40.00 | $177.4K | 215 | 274 |
| DKNG | PUT | TRADE | BEARISH | 01/17/25 | $6.7 | $6.6 | $6.7 | $45.00 | $87.7K | 2.3K | 151 |
| DKNG | CALL | SWEEP | BULLISH | 09/20/24 | $7.1 | $7.0 | $7.1 | $39.00 | $83.7K | 93 | 1 |
| DKNG | CALL | SWEEP | BULLISH | 09/20/24 | $8.45 | $8.35 | $8.45 | $37.00 | $81.9K | 136 | 98 |
| DKNG | PUT | SWEEP | BULLISH | 11/15/24 | $5.75 | $5.2 | $5.2 | $43.00 | $78.0K | 368 | 0 |
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 7,127,471, the DKNG's price is down by -2.81%, now at $42.16.
- RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
- Anticipated earnings release is in 71 days.
Professional Analyst Ratings for DraftKings
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $50.0.
- Maintaining their stance, an analyst from Benchmark continues to hold a Buy rating for DraftKings, targeting a price of $52.
- An analyst from Stifel has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $51.
- An analyst from Deutsche Bank persists with their Hold rating on DraftKings, maintaining a target price of $35.
- Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $58.
- Maintaining their stance, an analyst from BMO Capital continues to hold a Outperform rating for DraftKings, targeting a price of $54.
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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Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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