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Monday, November 08, 2021 2:47:08 PM
Options Traders Keep Betting on Struggling DraftKings (DKNG) Stock
By: Schaeffer's Investment Research | November 8, 2021
• Options activity has ramped up for DraftKings stock over the last two weeks
• Options can be had for a bargain right now
After a promising start to the year, things have gotten a little murky for sports betting staple DraftKings Inc (NASDAQ:DKNG). The security recently slipped below a floor at the $48 level, with pressure from its 30-day moving average, but appears to have found potential support at the $42 mark. Fresh off its worst weekly performance since late September, DKNG has now shed just over 5% in 2021, though today it was last seen up 1.3% to trade at $44.20.
Meanwhile, DraftKings stock has managed to nab a spot on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest weekly options volume within the past two weeks, with new names to the list highlighted in yellow. According to White's data, 557,737 calls and 227,270 puts were exchanged over this two-week period. The most popular contract during this time period was the weekly 10/29 50-strike call.
Short-term options traders have been unusually bearish, of late. This is per DKNG's Schaeffer's put/call open interest ratio (SOIR), which stands higher than 95% of readings from the past 12 months. In other words, these traders have rarely been more put-biased, despite calls winning out on an absolute basis.
Those looking to join these buyers can do so at a steal right now. DraftKings stock's Schaeffer's Volatility Index (SVI) of 55% sits higher than just 22% of readings from the past 12 months, suggesting options players are pricing in low volatility expectations for the stock at the moment.
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DiscoverGold
By: Schaeffer's Investment Research | November 8, 2021
• Options activity has ramped up for DraftKings stock over the last two weeks
• Options can be had for a bargain right now
After a promising start to the year, things have gotten a little murky for sports betting staple DraftKings Inc (NASDAQ:DKNG). The security recently slipped below a floor at the $48 level, with pressure from its 30-day moving average, but appears to have found potential support at the $42 mark. Fresh off its worst weekly performance since late September, DKNG has now shed just over 5% in 2021, though today it was last seen up 1.3% to trade at $44.20.
Meanwhile, DraftKings stock has managed to nab a spot on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest weekly options volume within the past two weeks, with new names to the list highlighted in yellow. According to White's data, 557,737 calls and 227,270 puts were exchanged over this two-week period. The most popular contract during this time period was the weekly 10/29 50-strike call.
Short-term options traders have been unusually bearish, of late. This is per DKNG's Schaeffer's put/call open interest ratio (SOIR), which stands higher than 95% of readings from the past 12 months. In other words, these traders have rarely been more put-biased, despite calls winning out on an absolute basis.
Those looking to join these buyers can do so at a steal right now. DraftKings stock's Schaeffer's Volatility Index (SVI) of 55% sits higher than just 22% of readings from the past 12 months, suggesting options players are pricing in low volatility expectations for the stock at the moment.
Read Full Story »»»
DiscoverGold
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