Best Options Strategy for DKNG
Looking for the best options strategy for DraftKings (DKNG)? There is no single answer — the right play depends on your outlook, your risk tolerance and current implied volatility. Below, our free engine shows the highest-scoring defined-risk strategy on the live DKNG option chain right now, and a simple map from your view on DKNG to the strategy that fits it. Model any of them in the calculator before you trade.
About DKNG
DraftKings (DKNG) is a major company in online sports betting and gaming. Options traders on DKNG tend to watch sportsbook handle, state legalization and earnings, since these can drive large moves in the share price.
DKNG for options traders
DraftKings is a high-beta consumer discretionary name whose options carry structurally elevated implied volatility, reflecting the inherent uncertainty of a business where regulatory approvals, competitive dynamics, and shifting sports-betting legislation can reshape the outlook almost overnight. The biggest vol events are quarterly earnings — where user acquisition costs, hold percentages, and state-by-state expansion progress are closely scrutinized — plus any major legislative development around gambling legalization, rival launches, or unexpected changes in sports-betting handle data. Its sensitivity to sports seasons and major league events adds a rhythmic, calendar-driven element to its vol profile that few other equities share.
Traders drawn to elevated IV typically sell covered calls on existing long stock positions or deploy short strangles during quieter stretches to harvest time decay, accepting the tail risk that a regulatory headline can shatter that calm instantly. Directional traders with a strong view on a catalyst often favor long straddles or strangles before earnings, betting that the actual move will exceed what the market has priced in. Iron condors can work in low-news windows but require tight management given how rapidly sentiment can shift on a single legislative or partnership announcement. Options liquidity is solid on near-term expiries and at-the-money strikes, though spreads widen in far-dated or deep out-of-the-money contracts.
Today's top-scoring strategy for DKNG
Our engine ranks defined-risk strategies on the live DKNG chain by probability of profit and risk/reward, then surfaces the best-scoring one. It is an educational illustration, not advice.
| Action | Qty | Type | Strike | Premium |
|---|---|---|---|---|
| Buy | 1× | CALL | $95 | $9.14 |
| Sell | 2× | CALL | $100 | $6.44 |
| Buy | 1× | CALL | $105 | $4.37 |
Simulation
Forward simulation of 6,000 lognormal price paths to expiration — not a historical backtest.
Illustrative example at DKNG's latest available price, computed with the same engine as the tool. Live option fills and the real IV skew refresh during US market hours.
Implied volatility
DKNG typically trades with elevated implied volatility, so its options carry richer premiums. Implied volatility drives option prices, so it is worth checking the live chain before you trade.
Earnings & IV crush
DKNG's next earnings report is due around August 5, 2026. Options that expire after it price in a binary move, so their implied volatility is elevated and usually collapses right after the announcement — an "IV crush". If your expiration falls before this date, the trade sidesteps the event.
Key figures
- Market cap
- $13.0B
- Beta (vs market)
- 1.64
- 52-week range
- $20.46–$48.78
- Short interest
- 8.4% of float · 3.0 days to cover
How to choose an options strategy for DKNG
Start with your outlook on DKNG, then match it to a defined-risk structure. Here are the most common choices and when each makes sense:
Bullish
Buy a call for leverage with capped risk, or a bull call spread to lower the cost and breakeven when you have a target price.
Long Call → Bull Call Spread →Bearish
Buy a put to profit from a decline with defined risk, or a bear put spread to cheapen the trade when you expect a measured move down.
Long Put → Bear Put Spread →Neutral
Sell an iron condor to collect premium while DKNG stays between two strikes, or write a covered call against shares you already own.
Iron Condor → Covered Call →How we pick the best strategy
For each ticker we pull the live option chain, build every supported strategy around the at-the-money strikes, and score them on probability of profit, risk/reward and capital efficiency — favouring defined-risk structures where the maximum loss is known up front. Methodology →
Open DKNG in the free calculator →
Frequently asked questions
What is the best options strategy for DKNG?
It depends on your outlook. Bullish traders often use a long call or bull call spread on DKNG; bearish traders a long put or bear put spread; neutral traders an iron condor or covered call. Our live scan above shows the current highest-scoring defined-risk play.
Are DKNG options liquid enough to trade?
DraftKings (DKNG) is among the most actively-traded US options, which usually means tight bid/ask spreads and plenty of strikes and expirations — though you should always check the open interest and spread on the exact contract.
How much money do I need to trade DKNG options?
Buying a single DKNG call or put can cost as little as the premium (often one to a few hundred dollars), while income strategies like a cash-secured put need enough capital to buy 100 shares if assigned.
Is this financial advice?
No. Everything here is educational and uses delayed, third-party data. It is not a recommendation to trade DKNG or any security. Do your own research.
What does DraftKings do?
DraftKings (DKNG) operates in the Gambling industry. The "About DraftKings" section above gives a fuller picture of what the company does and how it earns money.
Does DraftKings pay a dividend?
DraftKings does not currently pay a dividend, so there is no ex-dividend assignment risk to plan around for options strategies.
When does DraftKings next report earnings?
DraftKings's next earnings are expected around August 5, 2026. Implied volatility usually climbs into the report and drops sharply afterwards (IV crush) — important for any options position held over the date.
Tickers related to DKNG
Comparing DKNG with similar names can help you choose the best options strategy:
Company information
- Headquarters
- 222 Berkeley Street, 5th Floor, Boston, MA, 02116, United States
- Industry
- Gambling
- Employees
- 5,500
- CEO
- Mr. Jason D. Robins
- Phone
- 617 986 6744
- Website
- www.draftkings.com
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