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× | PUT | $15 | $0.01 |
| Sell | 1× | PUT | $25 | $0.94 |
| Sell | 1× | CALL | $25 | $1.82 |
| Buy | 1× | CALL | $35 | $0.04 |
Simulation
Forward simulation of 6,000 lognormal price paths to expiration — not a historical backtest.
Strategy analysis
Greeks vs price
Price × volatility (today)
| −30% | −15% | IV | +15% | +30% | |
|---|---|---|---|---|---|
| $32 | −$416 | −$401 | −$385 | −$372 | −$362 |
| $31 | −$306 | −$299 | −$294 | −$290 | −$289 |
| $30 | −$189 | −$193 | −$199 | −$207 | −$216 |
| $28 | −$75 | −$91 | −$110 | −$130 | −$150 |
| $27 | $21 | −$7 | −$37 | −$67 | −$96 |
| $26 | $81 | $44 | $7 | −$29 | −$63 |
| $24 | $89 | $52 | $15 | −$21 | −$56 |
| $23 | $39 | $12 | −$17 | −$48 | −$80 |
| $22 | −$55 | −$70 | −$88 | −$110 | −$133 |
| $21 | −$174 | −$179 | −$187 | −$199 | −$213 |
| $19 | −$300 | −$301 | −$303 | −$306 | −$311 |
Live scan from 2026-08-21 · quotes delayed ~15 minutes
Historical backtest: how a Iron Butterfly on DKNG would have performed
We approximated a Iron Butterfly on DKNG, entered repeatedly over the past year (93 historical entries, each held to expiration) with Black-Scholes-modelled entry premiums. Here is how that would have played out on real DKNG price history — an educational backtest, not a prediction of future returns.
Approximate: entry premiums are modelled with Black-Scholes from trailing realised volatility, held to expiration and settled against the real historical close. Real fills, implied volatility and slippage differ — treat it as directional context, not exact returns.
Implied volatility
DKNG is currently trading with elevated implied volatility, so its options carry richer premiums. On the options we scanned that was around 47% implied volatility, and higher implied volatility means richer premiums and wider expected moves.
Options on DKNG currently price in about 47% implied volatility, versus roughly 55% the stock has actually realised over the past month. The two are roughly in line, so neither buying nor selling premium has a clear volatility edge here.
DKNG's IV Rank is 0/100: implied volatility sits 0% of the way between its 29-day low (47%) and high (66%), and is above 3% of recorded days. Premium is historically cheap, which favours net-debit strategies like long options and debit spreads.
Off that volatility, the options market is pricing a move of about ±$3.28 (±13%) in DKNG by 2026-09-18 — a range of roughly $22.43 to $29. Strikes inside that band hold most of the premium and see most of the action.
Across strikes, puts and calls on DKNG carry a fairly symmetric implied volatility — no strong directional fear is priced in either way.
DKNG options chain highlights: open interest, volume and skew
The live DKNG options chain shows a put/call open-interest ratio of 0.35 (bullish-leaning (more calls)), with at-the-money implied volatility near 47.7%. Open interest clusters at the $30 call — a common resistance "wall" — and the $25 put, a support "wall": the strikes option writers are most exposed to into expiration.
Snapshot of open interest, volume and implied volatility for the nearest scanned expiration — context, not a trading signal.
DKNG insider trading activity (SEC Form 4)
Open-market insider transactions at DKNG over roughly the last six months, from SEC Form 4 filings. Open-market buys are the rarer, more telling signal — routine selling under pre-arranged plans is common, so read a net-selling figure with that in mind.
| Insider | Action | Shares | Value | Date |
|---|---|---|---|---|
| Dodge R Stanton | Sell | 8,189 | $245K | 2026-06-11 |
| Dodge R Stanton | Sell | 54,311 | $1.6M | 2026-06-11 |
| Bradbury Erik | Sell | 862 | $22K | 2026-05-20 |
| Levin Woodrow | Sell | 34,234 | $880K | 2026-05-18 |
| Moore Jocelyn | Sell | 2,150 | $55K | 2026-03-13 |
| Liberman Paul | Sell | 53,870 | $1.4M | 2026-03-11 |
Source: SEC Form 4 filings via Finnhub. Open-market purchases (P) and sales (S) only — grants, option exercises, gifts and tax withholding are excluded. Informational context, not investment advice.
Liquidity and tradeability
DKNG options are deeply traded, with tight bid-ask spreads around 4.3% near the money — fills are cheap, so the full range of strategies, including multi-leg spreads and iron condors, is practical.
Earnings & IV crush
DKNG's next earnings report is due around November 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
- $12.6B
- Beta (vs market)
- 1.63
- 52-week range
- $20.46–$48.78 (19% up the range)
- Short interest
- 7.9% of float · 3.6 days to cover
Other strong setups for DKNG
If your view on DKNG differs, these also scored well in the latest scan:
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 →⧉ Embed this free calculator on your site →
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?
We don't show a confirmed dividend yield for DraftKings here, so treat it as uncertain: before writing calls, check its current dividend and ex-dividend date with your broker — an approaching ex-dividend date can trigger early assignment on in-the-money short calls.
When does DraftKings next report earnings?
DraftKings's next earnings are expected around November 5, 2026. Implied volatility usually climbs into the report and drops sharply afterwards (IV crush) — important for any options position held over the date.
Price trend
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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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Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy · Terms.