What the Options Market Tells Us About DraftKings

Whales with a lot of money to spend have taken a noticeably bearish stance on DraftKings.

Looking at options history for DraftKings DKNG we detected 12 trades.

If we consider the specifics of each trade, it is accurate to state that 33% of the investors opened trades with bullish expectations and 58% with bearish.

From the overall spotted trades, 4 are puts, for a total amount of $212,112 and 8, calls, for a total amount of $418,981.

Latest Startup Investment Opportunities:

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 $30.0 to $49.0 for DraftKings during the past quarter.

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 $30.0 to $49.0 in the last 30 days.

DraftKings Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

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.

DraftKings's Current Market Status

• With a trading volume of 2,226,535, the price of DKNG is up by 1.83%, reaching $37.52.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 9 days from now.

Professional Analyst Ratings for DraftKings

5 market experts have recently issued ratings for this stock, with a consensus target price of $53.2.

• An analyst from Truist Securities has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $53.
• Maintaining their stance, an analyst from Oppenheimer continues to hold a Outperform rating for DraftKings, targeting a price of $58.
• Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for DraftKings, targeting a price of $53.
• Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on DraftKings with a target price of $50.
• Maintaining their stance, an analyst from Macquarie continues to hold a Outperform rating for DraftKings, targeting a price 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.