DraftKings' Unusual Options Activity Raises Eyebrows

DraftKings Sees Unusual Options Activity, Sending Shares Soaring

In a move that has left many in the financial community scratching their heads, DraftKings (DKNG) has seen a surge in unusual options activity, sparking a wave of buying that has sent the company's shares soaring.

According to data from Benzinga Pro, options traders have been piling into calls on DraftKings, with the majority of trades occurring in the $60 to $80 strike price range. This unusual activity has led to a significant increase in implied volatility, a key metric that measures the market's expectations of future price movements.

The unusual options activity has been concentrated in the near-term options, with traders buying calls with expiration dates in the next few weeks. This suggests that many traders are betting on a continued upward trend in the company's stock price.

DraftKings has been on a tear lately, with its shares more than doubling in the past few months. The company's strong performance has been driven by its growing presence in the online sports betting market, as well as its expanding portfolio of digital products and services.

The recent surge in options activity has been fueled by a combination of factors, including the company's strong earnings report and the growing excitement around the upcoming NFL season. With the NFL season just around the corner, many traders are betting on a continued upward trend in DraftKings' stock price as the company's sports betting business is expected to receive a boost from the increased interest and engagement.

While the recent unusual options activity has sparked a wave of buying, it's worth noting that options trading is a high-risk, high-reward strategy that can result in significant losses if not executed properly. As with any investment, it's always important to do your own research and consult with a financial advisor before making any investment decisions.