Sports Betting Stock Ripe for Bulls

DKNG's 50-day and 20-day moving averages are providing support

Jul 3, 2023 at 12:31 PM
facebook X logo linkedin

Subscribers to Schaeffer's Weekend Trader options recommendation service received this DKNG commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

The shares of DraftKings Inc (NASDAQ:DKNG) broke out of a flag pattern last week and closed above the $26 level, which had been acting as resistance since late May. The sports gambling name is also breaking out of a weekly base or cup pattern, while boasting long-term support from its ascending 20-day moving average. Whenever the latter has failed this year, the 50-day trendline has stepped in as a floor to contain price action.

DKNG July3

It's also worth noting that DraftKings stock boasts affordably priced premiums, per its Schaeffer's Volatility Index (SVI) of 44% that sits at the extremely low 1st percentile of annual readings. In simpler terms, now looks like a great opportunity to bet on the equity's next move higher with options.
Peak put open interest (OI) at the 25-strike is growing and could act as support if the bull market continues. Our recommended call option has a leverage ratio of 4.9, and will double on a 21.1% pop in the underlying shares.



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.