Financial giants have made a conspicuous bearish move on DraftKings. Our analysis of options history for DraftKings (NASDAQ:DKNG) revealed 10 unusual trades.
Delving into the details, we found 20% of traders were bullish, while 60% showed bearish tendencies. Out of all the trades we spotted, 5 were puts, with a value of $197,276, and 5 were calls, valued at $266,519.
Expected Price Movements
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $28.0 to $50.0 for DraftKings over the last 3 months.
Volume & Open Interest Development
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 $28.0 to $50.0 over the preceding 30 days.
DraftKings 30-Day Option Volume & Interest Snapshot
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| DKNG | CALL | TRADE | BEARISH | 01/16/26 | $14.5 | $14.4 | $14.4 | $30.00 | $97.9K | 133 | 0 |
| DKNG | CALL | SWEEP | BEARISH | 09/20/24 | $3.7 | $3.6 | $3.6 | $38.00 | $59.4K | 7.6K | 15 |
| DKNG | CALL | TRADE | NEUTRAL | 09/20/24 | $3.5 | $3.4 | $3.45 | $38.00 | $51.4K | 7.6K | 212 |
| DKNG | PUT | TRADE | NEUTRAL | 08/16/24 | $13.05 | $12.7 | $12.85 | $50.00 | $51.4K | 184 | 0 |
| DKNG | PUT | SWEEP | BULLISH | 07/05/24 | $0.38 | $0.27 | $0.35 | $37.50 | $44.2K | 1.0K | 678 |
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.
DraftKings's Current Market Status
- With a trading volume of 3,979,001, the price of DKNG is down by -0.45%, reaching $37.27.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 27 days from now.
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 $54.6.
- An analyst from Stifel has decided to maintain their Buy rating on DraftKings, which currently sits at a price target of $50.
- Consistent in their evaluation, an analyst from Guggenheim keeps a Buy rating on DraftKings with a target price of $52.
- An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $60.
- Consistent in their evaluation, an analyst from Oppenheimer keeps a Outperform rating on DraftKings with a target price of $58.
- An analyst from Wells Fargo has decided to maintain their Overweight rating on DraftKings, which currently sits at a price target of $53.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.