Looking Back on Unusual Options Activity & Dark Pool Volumes in DraftKings Inc. (DKNG)
On July 16th, 2021, in the market capitalization-weighted index NASDAQ Global Select Market Composite (NasdaqGS), we saw unusual or noteworthy unusual options volumes and activity in DraftKings Inc. (DKNG), which opened today at $60.60.
The unusual option activity detected on July 16th, 2021 were 35,000 contracts traded on the $60 strike call option dated for October 15th, 2021, traded at the ask, and an additional 35,000 contracts on the $40 strike put option for the same date, traded at the bid. When these contracts were opened, the $40 strike put option would have been sold at a premium of $288, with the $60 strike call option at $100, meaning $188 would have been collected for each one of the 35,000 contracts traded in this strategy, amounting to a credit of $6,580,000.
This strategy would have had a 67.9% probability of profit when opened, with an infinite upside and a maximum risk of $3811.90 per contract if DraftKings, Inc. closed at $0 at these contracts’ expirations.
At the time of this writing, the $40 strike put option is traded at a bid-ask spread of $0.13 to $0.14, meaning approximately $9,590,000 premium has been secured thus far; the $60 strike call option is being traded at a bid-ask of $4.15 to $4.25, resulting in $11,375,000 profit. Together, this strategy has $20,965,000 of profit, or an approximate 318% gain from its credit collected at open.
Seen below are the orders from the Unusual Whales Flow, which alerted to this strategy on the day of execution. You may also click here to view the Flow itself on unusualwhales.com.
Recent Unusual or Noteworthy Dark Pool Activity in DraftKings Inc. (DKNG)
Yesterday and in the past week, on the Unusual Whales dark pool flow, there were a series of noteworthy units traded on the dark pool.
This unusual activity amounted to over 1,203,965 units traded yesterday, August 31st, 2021. The previous high on the dark pool was on August 6th, 2021, at 1,438,700 units. Yesterday, September 1st, 2021, there were 454,702 units traded thus far. Below, DKNG’s price is seen in blue, with dark pool volume as gray bars.
Looking Back on Unusual Options Activity & Dark Pool Volumes in Snowflake Inc. (SNOW)
On August 20th, 2021, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in Snowflake Inc. (SNOW), which opened today at $300.00. This report comes after our previous report from last week on the date of the activity itself.
On August 20th, 2021, Snowflake, Inc. was down as much as 11% with various analysts suggesting that its growth was slowing. In spite of that, there were more than 100,000 transactions in the morning session, with 9,000 contracts on weekly call options traded, along with bullish long-dated put options contracts sold at the bid, and in the week thereafter, dated for January 20th, 2023, seen below:
Below are the aforementioned three orders of weekly contracts purchased, dated for August 27th, 2021, at the 260 and 280 strike call options, together amounting to 9,000 contracts, representing 900,000 shares. The orders from the Unusual Whales Flow alerted to this strategy on the day of execution. You may also click here to view the Flow itself on unusualwhales.com.
These orders were detected on August 20th, 2021 at the time of their trading, when Snowflake, Inc.’s stock price was at or around $266.67; at the time of the option contracts’ expirations, its stock price was at or around $297.71.
The 260 strike call option was purchased for $8.50 and the 280 strike call option for $3.00; these contracts had a maximum historical price of $45.60 and $27.00, respectively, realizing approximately 536% and 900% gains.
Just prior to these orders on August 18th, 2021, and on the same day as the orders, August 20th, seen below on the Unusual Whales dark pool flow, there were a series of noteworthy units traded on the dark pool. There were $46,000,000 worth of premium traded on August 18th, ahead of the above unusual options activity on the 20th
Recent Unusual or Noteworthy Dark Pool Activity in Snowflake Inc. (SNOW)
Seen below, recent unusual activity has amounted to over 2,399,571 units traded on August 31st, 2021. The previous high on the dark pool was on August 26th, 2021, at 1,014,821 units. Today, September 2nd, 2021, there have been 364, 945 units traded thus far. Below, SNOW’s price is seen in blue, with dark pool volume as gray bars.
For further information on the unusual options activity of DKNG and SNOW visit unusualwhales.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Unusual Whales
Unusual Whales uncovers unusual options, stocks, and crypto purchases, to equalize information for the retail investor. Follow at unusualwhales.com
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