Bulls Bet on DraftKings Stock After Earnings

DKNG calls are flying off the shelves today

Deputy Editor
May 5, 2023 at 10:54 AM
facebook X logo linkedin

Sports gambling stock DraftKings Inc (NASDAQ:DKNG) is 17.4% higher at $25.02 at last check, and hit a one-year high of $25.30 earlier after reporting better-than-expected results for the first quarter. Specifically, DraftKings turned in losses of 51 cents per share on revenue of $769.65, and raised its full-year forecast.

The results emboldened analysts, with no fewer than four price-target hikes rolling in. Craig-Hallum seems to be the most optimistic of the bunch, raising its price objective to $32 from $27. There's room for upgrades, too, as eight of 24 covering brokerages rate DKNG a "hold" or worse.

Today's options pits are rife with bullish activity. At last check, 85,000 calls and 35,000 puts have crossed the tape, or seven times the intraday average amount. Most popular is the weekly 5/5 24.50-strike call, while new positions are being opened at the 25-strike call in that series.

This denotes a shift in options traders' sentiment. In fact, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DraftKings stock sports a 50-day put/call volume ratio that stands higher than 94% of annual readings.

Plus, DKNG's Schaeffer's put/call open interest ratio (SOIR) of 0.92 sits in the 71st percentile of the past year, suggesting short-term options traders have targeted puts over calls at a higher-than-usual clip.

Thanks to a floor at the $17 area, and an early April bounce off its 60-day moving average, DKNG is more than 121% higher in 2023. Year-over-year, the stock boasts a 74.2% lead.


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 C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI