Options traders are bullish on CoreWeave and struggling DraftKings
While major indexes are taking a breather today, there are some notable moves from individual equities that have caught options traders' eyes.
Wheeling and Dealing CoreWeave Strikes Again
CoreWeave Inc (NASDAQ:CRWV) 12.3% higher to trade at $137.57, after the AI cloud computing company inked a $14 billion infrastructure deal with Meta Platforms (META). Just last week, CoreWeave secured a similar contract with OpenAI for $6.5 billion. CRWV is heading for its highest close since Aug. 12, and is 243% above its March 28 debut close at $40.
At last check, over 400,000 calls have changed hands today, volume that's double the average intraday amount and the number of puts exchanged. Most popular is the weekly 10/3 140-strike call, while the October 150 call is also seeing new positions bought to open. With a healthy 11% of the stock's total available float sold short, a short squeeze could help CRWV return to $150.
DraftKings Suffers as Kalshi Gains Momentum
DraftKings Inc (NASDAQ:DKNG) stock is down 10.2% to trade at $38.02, after a SeekingAlpha report indicated prediction market company Kalshi saw a $260 million trading record Saturday, a number that was topped on Sunday with $275 million. DKNG is trying to hold its year-to-date breakeven level today, but is now down 20.8% in September alone.
Call traders are undeterred. Over 100,000 calls have been exchanged already today, volume that's 4 times the average intraday amount and nearly double the number of puts traded. The weekly 10/3 39.50-strike call is the most popular, as is the October 37 put.
Should the sports betting stock continue to struggle and reward bears, downgrades could add fuel to the fire; 28 of the 31 brokerages covering the stock maintain "buy" or better ratings, with zero "sells" on the books.
