Unusual Options Activity In DraftKings
DraftKings is a digital sports entertainment and gaming company created to fuel the competitive spirits of sports fans with products that range across daily fantasy, regulated gaming and digital media. DraftKings is the only U.S.-based vertically integrated sports betting operator.
DraftKings provides users with daily sports, sports betting, and iGaming opportunities. It is also involved the design and development of sports betting and casino gaming platform software for online and retail sportsbook, and casino gaming products.
Earlier this year we saw the NBA suspended and March Madness canceled as COVID-19 caused a domino effect in the sports world causing havoc in the gambling world. With almost every retail gaming establishment shuttered, the American Gaming Association estimated 650,000 workers had been impacted and $43 billion in economic activity was lost within two months. So what did people do, they turned to alternative means to get their gamble fix.
Despite no sports on TV, DraftKings started creating products that allow customers to engage in fantasy sports. Draftkings made it possible for people to bet on eNASCAR, Counter Strike, and Rocket League, as well as pop culture events such as TV shows "Survivor," "The Last Dance" and "Top Chef.
And as COVID-19 persist, DraftKings continues to benefit.
DraftKings Inc. (DKNG) broke out above the June high at 44.79 on Monday, lifting to an all-time high just below 50. A measured move target in the low 60s looks conservative for the rapidly-growing company, with persistent buying volume underpinning the upside. The successful launch of the new National Football League season over the weekend is adding to bullishness that’s been solid as a rock due to continued isolation as a result of the pandemic.
The Benchmark Company analyst Mike Hickey raised their target from $45 to $57 on Tuesday, noting that DraftKings had just “announced a new deal with ESPN to be the co-exclusive sportsbook link-out provider. Prior brand building deals included Michael Jordan and the Chicago Cubs, all of which are elevating the brand and further legitimizing sports betting. We believe the virus influence will also provide a significant boost to player engagement in Q3.”
And the news for DraftKings continues to get better. DraftKings and Disney's (DIS) ESPN announced a multiyear agreement earlier this week and become a "co-exclusive" sportsbook link-out provider and exclusive daily fantasy sports provider of media giant Disney immediately connecting fans to DraftKings' products and services.
With all the exciting news happening to DraftKings, the Smart Money thinks price is going a lot higher. Yesterday, the Smart Money bought out of the money call options that expire in Oct.
If you believe in the DraftKings story, the chart suggests to go long at the daily demand at $41.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted Using LeoFinance
