Looking At DraftKings's Recent Unusual Options Activity

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 8 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, 4 are puts, totaling $224,564, and 4 are calls, amounting to $183,110.

Latest Startup Investment Opportunities:

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 $31.0 to $47.0 for DraftKings during the past quarter.

Volume & Open Interest Trends

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in DraftKings's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to DraftKings's substantial trades, within a strike price spectrum from $31.0 to $47.0 over the preceding 30 days.

DraftKings Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

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

• Trading volume stands at 3,578,227, with DKNG's price up by 0.26%, positioned at $34.37.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 56 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 $52.0.

• Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for DraftKings, targeting a price of $48.
• An analyst from Macquarie persists with their Outperform rating on DraftKings, maintaining a target price of $50.
• Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $60.
• An analyst from Benchmark has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $44.
• Consistent in their evaluation, an analyst from UBS keeps a Buy rating on DraftKings with a target price of $58.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest DraftKings options trades with real-time alerts from Benzinga Pro.