DraftKings Unusual Options Activity

Investors with significant funds have taken a bearish position in DraftKings DKNG, a development that retail traders should be aware of.

This was brought to our attention today through our monitoring of publicly accessible options data at Benzinga. The exact nature of these investors remains a mystery, but such a major move in DKNG usually indicates foreknowledge of upcoming events.

Today, Benzinga's options scanner identified 8 options transactions for DraftKings. This is an unusual occurrence. The sentiment among these large-scale traders is mixed, with 37% being bullish and 62% bearish. Of all the options we discovered, 7 are puts, valued at $306,704, and there was a single call, worth $107,000.

Expected Price Movements

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 $47.0 for DraftKings during the past quarter.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for DraftKings options trades today is 2136.33 with a total volume of 1,473.00.

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 $25.0 to $47.0 over 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 TRADE BEARISH 06/21/24 $11.4 $10.6 $10.7 $25.00 $107.0K 633 100
DKNG PUT SWEEP BEARISH 05/31/24 $4.25 $4.05 $4.21 $40.00 $95.5K 3.9K 234
DKNG PUT SWEEP BULLISH 01/17/25 $3.15 $3.1 $3.1 $32.00 $46.5K 1.2K 152
DKNG PUT SWEEP BULLISH 01/17/25 $2.45 $2.4 $2.4 $30.00 $36.0K 3.4K 301
DKNG PUT SWEEP BULLISH 01/17/25 $2.45 $2.4 $2.4 $30.00 $36.0K 3.4K 151

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.

Current Position of DraftKings

  • With a volume of 2,153,388, the price of DKNG is down -0.14% at $35.91.
  • RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
  • Next earnings are expected to be released in 63 days.

Expert Opinions on 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 $56.8.

  • An analyst from Benchmark has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $52.
  • An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $58.
  • Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for DraftKings, targeting a price of $54.
  • Maintaining their stance, an analyst from Oppenheimer continues to hold a Outperform rating for DraftKings, targeting a price of $60.
  • An analyst from UBS has decided to maintain their Buy rating on DraftKings, which currently sits at 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.

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Posted In: OptionsMarketsBZI-UOA
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