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Quantchabot has detected a promising Bull Put Spread trade opportunity for DRAFTKINGS INC. CLASS A COMMON STOCK (DKNG) for the 7-Aug-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

DKNG was recently trading at $35.56 and has an implied volatility of 114.09% for this period. Based on an analysis of the options available for DKNG expiring on 7-Aug-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $35.57-$47.15 at expiration. In this scenario, the average linear return for the trade would be 96.45%.

Big 9.23% Change: After closing the last trading session at $32.56, DRAFTKINGS INC. CLASS A COMMON STOCK opened today at $32.50 and has reached a high of $35.98.

Trade approach: A movement as big as 9.23% is a significantly bullish indicator, so this trade is designed to be profitable if DKNG maintains its current direction and does not revert back to pricing on the bearish side of $35.56 on 7-Aug-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if DRAFTKINGS INC. CLASS A COMMON STOCK closes at or above $35.30 on 7-Aug-2020. Based on our risk-neutral analysis, there is a 51.07% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.