Looking At DraftKings's Recent Unusual Options Activity

Author: Benzinga Insights | April 02, 2024 10:30am

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

Looking at options history for DraftKings (NASDAQ:DKNG) we detected 11 trades.

If we consider the specifics of each trade, it is accurate to state that 54% of the investors opened trades with bullish expectations and 45% with bearish.

From the overall spotted trades, 2 are puts, for a total amount of $504,404 and 9, calls, for a total amount of $1,195,185.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $43.0 to $65.0 for DraftKings over the last 3 months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for DraftKings options trades today is 7367.86 with a total volume of 26,972.00.

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 $43.0 to $65.0 over the last 30 days.

DraftKings Option Volume And Open Interest Over 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	PUT	TRADE	BULLISH	04/19/24	$1.29	$1.26	$1.26	$43.00	$450.3K	16.9K	3.6K
DKNG	CALL	TRADE	BULLISH	04/19/24	$0.56	$0.52	$0.55	$48.00	$330.0K	14.6K	9.4K
DKNG	CALL	TRADE	BEARISH	04/19/24	$1.07	$1.01	$0.98	$46.00	$294.0K	3.6K	3.3K
DKNG	CALL	TRADE	BEARISH	01/17/25	$3.6	$3.55	$3.55	$60.00	$177.5K	5.1K	1.0K
DKNG	CALL	TRADE	BULLISH	01/17/25	$3.55	$3.55	$3.55	$60.00	$177.5K	5.1K	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 sports betting in 24 states (46% of the U.S. population) and iGaming in seven states (11% of U.S.), 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.

Having examined the options trading patterns of DraftKings, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

DraftKings's Current Market Status

• Trading volume stands at 1,919,618, with DKNG's price down by -2.25%, positioned at $43.93.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 30 days.

What Analysts Are Saying About DraftKings

In the last month, 5 experts released ratings on this stock with an average target price of $55.2.

• Consistent in their evaluation, an analyst from Susquehanna keeps a Positive rating on DraftKings with a target price of $54.
• Consistent in their evaluation, an analyst from Needham keeps a Buy rating on DraftKings with a target price of $58.
• In a cautious move, an analyst from Mizuho downgraded its rating to Buy, setting a price target of $58.
• Reflecting concerns, an analyst from JMP Securities lowers its rating to Market Outperform with a new price target of $52.
• Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for DraftKings, targeting a price of $54.

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.

Posted In: DKNG