Call Traders Target DraftKings Stock Amid Strong Volume Growth

Shares of DraftKings Inc (NASDAQ:DKNG) are up 7.6% at $26.67, after the company reported strong May prediction markets growth, with annualized consumer trading volume rising 24% to $1.3 billion and total volume climbing 34% to $3.1 billion. The update highlights increasing adoption of its nationwide prediction markets platform.

Options bulls are chiming in after the news, with 50,000 calls exchanged so far today, triple the amount typically seen at this point, while just 12,000 puts have crossed the tape. The weekly 6/12 27-strike call is the most popular contract, with new positions being sold-to-open. 

These traders are in luck, as options look attractively priced at the moment. DKNG's Schaeffer's Volatility Index (SVI) of 57% sits in the 29th percentile of its annual range, while its Schaeffer's Volatility Scorecard (SVS) of 85 out of 100 indicates the stock has consistently exceeded options traders' volatility expectations during the past year.

Meanwhile, the number of shares sold short increased 7.6% over the last two reporting periods to 38.8 million, representing 8.1% of DraftKings' available float. It would take shorts three days to buy back their bearish bets, at the stock's average pace of trading.

On the charts, DKNG has been slowly moving higher since its late-March three-year lows. With today's surge, the shares look to be breaking out and above the overhead 120-day moving average for the first time since September. For 2026, the equity is down 22.7%.