DraftKings Inc (NASDAQ:DKNG) stock is 3.8% higher to trade at $24.57 at last check, after the Wall Street Journal reported U.S. Senators were introducing a bipartisan bill that would ban sports betting from prediction markets. Companies like Kalshi and Polymarket have taken a chunk of sportsbooks' market share for betting, a headwind that contributed to DKNG's 13.5% post-earnings bear gap on Feb. 13.
Sector peer Flutter Entertainment (FLUT) is up 6% today as well. Despite today's rally, DraftKings stock is down 28.6% in 2026. The shares bottomed out at $21.01 on Feb. 13, and the rally from here is now testing their descending 40-day moving average.
Call traders are responding well to today's price action. At last check, over 25,000 calls have changed hands, volume that's double the average intraday amount and more than quadruple the number of puts exchanged. The April 27.50 call is the most popular, while new positions are being bought to open at the weekly 3/27 26-strike call.
Options look like a good way to go. DKNG's Schaeffer's Volatility Scorecard (SVS) of 95 out of 100 means the stock usually exceeds volatility expectations.
