When the stock was in the $60s-$70s, it was ahead of itself valuation wise, though when we bought it we saw it as being a potential $100 stock with the tech type market we saw as emerging.
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DraftKings - A DiscussionĭraftKings appears to be a stock in free fall, but the question our traders like to ask is "when does this actually become a buy?" Frankly, we believe the stock is overshooting to the downside and strongly believe traders will support the stock as it closes the chart gaps. Options consideration: Recommend selling front month contract OTM puts for income and to define entry with each 10% decline in the stock from present levels. After the immense pullback, we see shares as a buy as the gap to the mid teens is filled.
As sports returned, there were even more interests in the company's operations especially as more states legalized betting. That said, there were other competitions and e-sports that kept business going in 2020. Many individuals stuck at home turned to digital entertainment, including sports betting, even with sports not being played for a spell in 2020. Take a look at the incredible rise, and fall, of the stock in the last two years:Ĭhart showing DKNG history and BAD BEAT Investing trading zones (BAD BEAT Investing)Īs you can see, the stock had a solid rise in 2020-2021. In this column, we recommend a trade and discuss fundamental justifications and risks to owning the stock. In our opinion, the stock is about to enter a buy zone as it fills its gap from about two years ago, falling heavily since its just reported earnings. That said, the stock has pulled back so much since that time.
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Actually, our entire team owns it, except we all have a so-called "house position" as we were buyers sub-$20 back in 2020, and then sold our entire initial investment plus significant profit and chose to let the rest run for eternity with the house's money. We have had a very interesting history with this stock. Everyone who knows and follows DraftKings ( NASDAQ: DKNG) stock knows that it has been absolutely crushed in recent months.
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