DKNG seems like a very good inventory for name merchants
Subscribers to Schaeffer’s Weekend Dealer choices suggestion service acquired this DKNG commentary on Sunday night time, together with an in depth choices commerce suggestion — together with full entry and exit parameters. Be taught extra about why Weekend Dealer is certainly one of our hottest choices buying and selling providers.
DraftKings Inc (NASDAQ:DKNG) inventory staged a post-earnings reversal from the 20-day shifting common and $42.25 stage, which is a 50% retracement of its all-time highs and 2022 lows. With these ranges of help in place, now seems like an opportune time to provoke a protracted place.
Previous to the corporate’s fourth-quarter earnings report, 5 of the most important open curiosity (OI) positions on DKNG had been places. Plus, a big quantity of overhead calls on the 45-strike and above expired on Friday, eradicating potential options-related resistance. In the meantime, April’s implied volatility (IV) plunged 16%, a stage that’s on par with 63-day historic volatility (HV).
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It’s additionally price noting that shorts are nonetheless in overlaying mode, and that the 19.81 million shares bought brief account for almost 5% of the inventory’s accessible float. Our name possibility has a leverage ratio of 6.5, and can double in a 15.4% transfer greater within the underlying safety.
