$DKNG call buyers score fast profits

$DKNG call buyers score fast profits

by

Bullish traders are scoring fast profits on upside wagers placed on DraftKings (DKNG) today.

This morning on Jan. 24Market Rebellion’s Unusual Option Activity Service found that 6,900 Weekly $39.50 calls, expiring Jan. 26, were bought for $0.26 to $0.37 with shares at $38.61. This was clearly fresh buying, as open interest in the contract was just 440 before the activity appeared.

Those calls have changed hands for as much as $0.96 this session, a 159.46% return, while the stock rose 3.55% in the same time frame, illustrating the kind of leverage that can be achieved with options.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

DKNG was last higher on the session by 3.63% to $36.98.

Ready to start trading? Try Unusual Option Activity Essential. Learn how you can follow the “smart money” with a fresh UOA trade idea each week – including technical levels so that you know how to manage each trade!

Subscribe to Rebel Roundup for your weekly digest of market highlights and free trading lessons.
We’re on a mission to empower retail traders with the tools they need to succeed.

Join a growing community of traders with Market Rebellion

Join the thousands of users daily!