Buy Call DKNG

December 4, 2023
Sell Existing Position: Sell your DraftKings (DKNG) January 25/45 Bull Call Spread for $11.45 or more.

Our recently added stop in DKNG has been hit, and because of that, we are going to exit our position for a profit of approximately 228%.

To execute this trade you need to:
Sell to Close your DKNG January 25 Call
Buy to Close your DKNG January 45 Call

We may revisit DKNG in the near future, but for today, we are moving on from our trade with a nice profit.

July 13, 2023
Sell a Third of Existing Position: Sell a Third of your DKNG January 25/45 Bull Call Spread for $7.40 or more.

DKNG is busting out to a new high today and looks terrific. Let’s stick to the plan, sell a second third of our position for a profit of over 100%, and then really go for the home run on the balance of the trade.

To execute this trade you need to:
Sell to Close a Third of your DKNG January 25 Calls
Buy to Close a Third of your DKNG January 45 Calls

As is always the case when we take partial profits, we hope this sale is a mistake and the stock and our trade continue to race higher.

July 10, 2023
Adjust Existing Position: Against DKNG January 25 Call, Sell the January 45 Call for $0.70 or more.

DKNG is busting out to a new multi-month high today. And while I think the stock looks terrific, and option activity is strong, let’s lower our capital at risk in this trade by selling a call that is $16.50 out of the money.

To execute this trade you need to:
Sell to Open the January 45 Call

After this adjustment, our position will be a traditional bull call spread that looks like this:
Long DKNG January 25 Call
Short DKNG January 45 Call
Cost basis of $3.55

This adjustment will be a mistake if DKNG trades well above 45 on January expiration. However, that is a mistake we can deal with as our spread would be worth $20 in that scenario.

June 6, 2023
Sell a Third of Existing Position: Sell a Third of your DKNG January 25 Calls for $5 or more.

DKNG is breaking out to a new recent high today. Let’s stick to the playbook, lock in a profit of approximately 20% on a third of our calls, and then go for much greater gains with the balance of the position.

To execute this trade you need to:

Sell to Close a Third of your DKNG January 25 Calls

Depending on market conditions as well as option activity, our next profit taking zone will be in the 60-100% range.

May 24, 2023
Buy the DraftKings (DKNG) January 25 Call (exp. 1/19/2024) for $5 or less.

Our BABA and DIS positions are not working as the stocks have performed poorly after earnings in the last two weeks. It’s time to throw in the towel on both of those positions so we can move that capital into an earnings season winner, DKNG.

DKNG is one of a handful of earnings season winners I have had interest in buying. And since that earnings release traders have been aggressively buying longer-term call buys, including these trades the last two days:

Buyer of 6,000 DraftKings (DKNG) January 25 Calls for $4.50 – Stock at 24.2

Buyer of 3,000 DraftKings (DKNG) December 35 Calls for $1.48 – Stock at 25.

Let’s get involved with DKNG with a longer-term position, that is targeting a move higher well beyond this week’s debt ceiling market wobbles.

To execute this trade you need to:
Buy to Open the DKNG January 25 Call.

The most you can lose on this trade is the premium paid, or $500 per call purchased.

Stepping back, I’ve been adding earnings season winners in UBER, BSX and now DKNG, targeting a move higher later this year. The longer-term call buys should somewhat shelter us from the market pulling in if our friends in Washington, D.C. play with fire the next couple of weeks.

Finally, while the premiums collected via our sales of BABA and DIS are not large ($2.75 and $1.25) I am putting that capital right into our DKNG call buy, of which I am buying a full position.