Checking in With DraftKings Stock After Recent Slide

The stock just slipped below its recent floor at the $48 level

Deputy Editor
Oct 25, 2021 at 1:53 PM
facebook twitter linkedin

DraftKings Inc (NASDAQ:DKNG) stock has been consolidating above the $48 level since late September. However, last session's drop sent the stock below that level, as well as all short-term moving averages. In the past six months, DraftKings stock is down 21%. At last check, DKNG was up 1.4% to trade at $46.76.

In the options pits so far today, 99,000 calls and 20,000 puts have crossed the tape. The most popular is the weekly 11/5 50-strike call, followed by the November 55 call, with new positions being opened at the former. 

Meanwhile, there is plenty of short-covering potential. Short interest makes up 8.5% of the stock's available float, or nearly three days' worth of pent-up buying power. 

The majority of analysts are bullish on DKNG. Of the 17 analysts in coverage, 11 carry a "strong buy" rating, five sport a "hold," and one a "strong sell." Plus, the 12-month consensus price target of $69.80 is a 49.3% premium to current levels 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners