TopOptionAlert
Oct 24, 12:36 PM
$DKNG NOV20 21.5C · still actionable
Zone:
$20.76 to
$21.06
Invalidation: close under
$20.49
Objectives:
$21.26, then
$22
The math: up 1.7% to the first objective and 5.2% to the second, against 2.0% risk on the invalidation, better than 2 to 1 to the second.
Dear friend, picture a beaten down name that found its feet again. DraftKings fell to 18 dollars and 35 cents last week and climbed back to 20 dollars and 91 cents on Friday, which tells you buyers are stepping in. The third quarter report lands November 5 after the close, and this November 20 call runs past that report, so you are positioned before the answer instead of chasing after it. This is a swing back toward the October 22 high, with a clear line at 20 dollars and 49 cents that says the idea is wrong if it closes under it.
P.S. Keep an eye on 26 dollars and 17 cents, the top of the recent 50 day range, where a longer turn would really show.
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