Analyst Deems DraftKings Stock a Winning Bet

The equity already sports an over 207% year-over-year lead

Digital Content Manager
Apr 27, 2021 at 10:17 AM
facebook X logo linkedin

The shares of DraftKings Inc (NASDAQ:DKNG) are up 2.1% to trade at $60.46 at last check, after Needham initiated coverage of the security with a "buy" rating, as well as an $81 price target, which is a 36.8% premium to last night's close. The analyst in question sees the company as a leader in the North American gambling sector, with a market opportunity of $35 billion, and a regulatory environment that is currently supportive.

While DraftKings stock recently took a major step back from its March 22, all-time high of $74.38, shares bounced off the $54 mark last week. Today's pop has also helped DKNG push past resistance from the 10-day moving average, which came into place later in March. Longer term, the security sports an impressive 207.9% year-over-year lead. 

A short squeeze could fuel additional tailwinds for DKNG. Short interest rose 36.8% in the most recent reporting period, and the 23.96 million shares sold short now make up 8.4% of the stock's available float.

A shift in the options pits may fuel even more additional gains. This is per DraftKings stock's Schaeffer's put/call open interest ratio (SOIR), which sits higher than 94% of readings in its annual range. In other words, investors have rarely been more put-biased.  

Lastly, DKNG options are a bargain right now. The security's Schaeffer's Volatility Index (SVI) of 25% sits low at the fourth percentile of the past 12 months. In simpler terms, the security sports attractively priced premiums at the moment. What's more, its Schaeffer's Volatility Scorecard (SVS) ranks at 96 out of a possible 100, implying the stock has tended to exceed these volatility expectations in the past year -- a boon for option buyers. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI