DraftKings Options Trading: New Opportunities Available

DraftKings Inc offers new options ahead of September expiration. With potential yield boosts from put and call contracts, investors could find attractive strategies as they navigate pricing and volatility.

Date: 06-01-2025

AI Rating: 7

DraftKings Options Overview

The report highlights new options for DraftKings Inc (DKNG) with significant details on available put and call contracts. Currently, options are pointing towards various strategies that may impact investor sentiment and stock prices.

The key points outlined in the report include the put contract at a $37.00 strike price with a current bid of $4.70. If investors were to sell this put contract, they would be committing to buy shares at $37.00 while receiving a premium, adjusting their effective purchase price to $32.30. This represents a 2% discount to the trading price and offers a potential return of 12.70% if the option expires worthless.

The current odds of this put contract expiring worthless is estimated at 63%, suggesting a favorable scenario for option sellers. Such conditions can lead to an increase in interest from buyers and impact demand for DKNG shares positively.

On the calls side, the $40.00 strike call contract has a current bid of $5.00. If investors were to buy shares at the current price of $37.62 and sell this call, the potential total return (if the stock gets called away) could reach 19.62%. This opportunity reflects a 6% premium over the current trading price and a 44% chance of expiring worthless, allowing investors to retain both their stocks and the collected premium, essentially generating a 13.29% yield boost.

Volatility Snapshot

The reported implied volatility for the put contract is 54%, while for the call contract, it stands at 49%, which is above the actual twelve-month volatility of 43%. High volatility could lead to more trading activity and increased interest in options strategies, influencing stock price movements.

Stocks: DKNG