Options traders are targeting FLUT and DKNG after today's news
The widespread legalization of sports betting has plenty of investors scrutinizing the sector as a growth play, especially amid the NFL season. In today's news, Flutter Entertainment PLC (NYSE:FLUT) lifted its revenue guidance, forecasting $21 billion in revenue by 2027, and announced a $5 billion share buyback plan. The stock is on the rise in response, taking DraftKings (NASDAQ:DKNG) stock with it, as both stand to gain from the former's success.
Flutter Entertainment stock is gapping to fresh record highs, up 6.3% at $242.61 at last glance and adding to its 35.5% year-to-date lead. Unsurprisingly, the stock has already seen 4.4 times its average daily options volume at this point in the day, with the most activity at the March 260 call.
DKNG was last seen up 6.8% to trade at $41.79, and trading at its highest levels since June. In the options pits, the stock has seen double the average amount of calls, mostly due to high volume at the weekly 9/27 40.50-strike call. This contract is also being sold to open.