DKNG - DraftKings - Coverage Initiated $100 Price Target

0. Notes to follow;

1. We bought on September 11, 2020. Around $41.50 Mom's Birthday :) Love you Mom. Rest Easy Now Please :(

2. We were waiting for the Ark Fund to pick this up, and transition from Stock Market gambling, to Draft Kings;

3. Take a look at coverage and news on this Stock:

thefly.com/news.php?symbol=DKN...

4.

DraftKings and the NFL expand their DFS and content partnership to Canada

Read more at:
thefly.com/n.php?id=3240797...

5.

DraftKings rises after one of Cathie Wood's ARK ETFs discloses holdings 16:22 DKNG Shares of DraftKings (DKNG) closed with an advance of $4.67, or 9%, to $59.31 after a holdings report from Cathie Wood's ARK Next Generation Internet ETF, dated February 1, shows that the ETF holds 620,300 shares of DraftKings, giving it a weight of 0.49% in the fund.

Read more at:
thefly.com/n.php?id=3239308...

6. We are holding for at least $250 .This is a great long-term 10 bagger.

- Dr Chelsea

Comment:

$100 Price Target

7. So we are rating this a Strong Buy, with a 12 month price target of $100;

$250 Price Target

8. So we are rating this a Strong Buy, with 5 year target of $250;

- drchelsea

Comment:

Technicals:

We have $35 and $65 range on the Scalloped consolidation, and news cycle. So $30 over the ATH at $65 or so, $95, you can take Money Off The Table, a little if you wish, if we hit $100 in the next 30 days.

Otherwise Hold.

Updates will be forthcoming.

Comment:

We are holding for $250, will buy on dips to get a FULL POSITION on this, and hold for 5 years minimum.

Cheers.

Comment:

PUTS / CALLS / SHORTING

This is investing. Not gambling. You want to trade it, go ahead. But don't short it. Puts if you must. Calls if they don't get too expensive.

We have massive Open Interest on the Feb 5 and Feb 12 $60 Strike on DKNG. Watch yourself and don't naked short, or anything crazy. This could move to $75 quickly if it slings past the option tables, and institutions will have to hedge against all those calls.

Cheers.

Comment:

Institutional Hedging on Calls

So when you purchase a $60 DKNG call at the Feb 12 Strike, and the Stock is at say $52, and the Delta is .4 say, then if you buy 1 CALL, which is 100 shares, the Institution that sold you that call will buy .4 x 100 shares, which is 40 shares of DraftKings. When the price moves down and the Delta goes down, they SELL, when the price moves up and the DELTA goes to say .55 when it hits $60, then now have .55 x 100, which is 55 share exposure. They must buy 15 more shares as they now have more exposure due to GAMMA. What is Gamma? Gamma is the Change in the Delta for each unit price move in the stock.

The Greeks

www.investopedia.com...-understand-options/

Comment:

So the more you buy, the more THEY MUST BUY, as they stock price moves, especially against SHORT TERM STRIKES. They will move quickly in terms of Delta and Gamma, and create the parabolic moves like in GameStop. Easy Peasy if you rig the game right.

Comment:

As as the Stock "moons" as they say, it causes the Volatility to move up on those options. That means the options get priced MUCH higher than the STOCK price to reflect the "possibility" of more "major swings". This causes the OPTIONS to go sky high, and you can imagine where this stops. It is like a Roller Coaster stuck on full blast, and you wait until it completely flys off the rails and everyone left on it.... Well you get it.

Anyway, DKNG is a solid company, solid performance, solid prospects, and may sling slot, for actually the RIGHT reasons.

This is how the Market is supposed to work.